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Eight months after turning completely independent, Fiat is on track to meeting the dealership target it had set for India. The company has reiterated in the next few quarters, it will launch eight products, including those from Chrysler. Nagesh Basavanhalli, president and managing director, Fiat Chrysler India, in an interview with Swaraj Baggonkar, talks about the company’s plans. Edited excerpts:
Is Fiat on the road to meeting its announced dealership target?
The goal was to get to 100 by March 2014. Today, we are at 90. Obviously, we believe we will get to 100 by the end of December. So, we are ahead of the schedule. There are another 18 letters of intent given to other dealers, and these would raise the count to 108.
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We are in the mode of growth. Yes, we will continue to grow our dealership. We are figuring the exact number…suffice to say it will be higher than 100.
Will Chrysler dealerships be separate from those of Fiat?
Yes, these will be different from Fiat dealerships and have their own showroom ambience. Initially, only a select few will be opened. There could be new dealers for Jeep, or existing Fiat dealers may set up Jeep showrooms.
Will Chrysler see the same kind of growth in dealerships?
The focus will be to increase volumes for Fiat. Potential dealerships (are those) that will be involved with Chrysler. We want to launch Jeep when we are ready; we are working towards that.
Wasn’t Jeep scheduled to be launched in September? Could the Abarth and Jeep be launched simultaneously?
There was only speculation we would launch Jeep this year. We are working on it. We are discussing a lot internally. The Abarth and the Jeep could be launched at the same time; we are constantly talking to customers.
You are launching eight products at a time when the market has turned considerably weak.
The overall market sentiment remains challenging, but we look at this as road bumps and short-term impediments. Our commitment to India is part of the long-term strategy. Fiat has been in India for a long time. We are looking at the next five years, not the next few quarters.
What is the capacity utilisation at Ranjangaon? Are you aiming to supply more engines to other companies?
Currently, it is 40 per cent, including that of Tata Motors. Earlier, it was higher. We are making engines for anyone who wants to buy. We are supplying engines to Maruti Suzuki, Premier and Tata Motors.
Do you plan to bring your international finance arm to India?
I wouldn’t say never…but we have very good tie-ups with Tata Capital, State Bank of India and Axis Bank and as our business grows, we will look at all options. Right now, in the medium to long term, we don’t have any plan to bring the finance company to India.
