Fiat to set up own dealerships to end marketing dependency on Tata

With the declining sales of Fiat under the marketing pact with Tata  Motors, Fiat India has finally decided to go it alone in the Indian market.

The parting of ways follows reports of step motherly treatment meted out to prospective Fiat car buyers when they visit Tata-Fiat dealerships to buy Fiat cars.

Commentators say Fiat seems to have finally acted to protect its interests as the joint venture seems to have done Fiat India more harm than good.

Over the next 12-18 months, Fiat India plans to set up dealerships across 20 Indian cities and move out of Tata dealerships completely.

The move, however, is being seen at only the dealership level as there has been no word about Fiat opting out of the overall alliance with Tata, which also covers engine and technology sharing.

According to Fiat India president and CEO Rajeev Kapoor who spoke on the sidelines of the Automotive Component Manufacturers Association's (ACMA) annual summit, the same dealers that were engaged by the Tata-Fiat joint venture would now open separate showrooms for the Tata and Fiat brands.