For all the noise, how is Fiat really doing?

Yes I agree Net helps for researching but then one neednot believe the final research done on net..one has to of course do ground work..that is where reality is. 

I have seen many times that the most sought after products are always not the best products. People do go more after the mouth word..may be some have the herd mentality. Simple over here in India Nokia mobiles are the best selling where as else where in the world Motorola are!

Err - where in the world is Motorola the best seller?  Please check this link out:

http://stats.getjar.com/statistics/ 

Motorola's market share across the world is < 2%.  LG sells more mobilephones than Motorola.

This is why I keep saying that perceptions are different from reality.  This also shows that the ability to use the net is not necessarily a sign of awareness.

I was just trying to give an example! 

Well in the link posted above in North America Samsung is the best selling device. I meant that the people go by herd mentality mostly everywhere! There buying decisions are very much influenced by peer pressure and what the society and friends think of it.

Yes here in India we have different mentality.  We make those companies hit which are failure elsewhere.  There are good numbers of examples:

1. Nokia successfull in India

2. Suzuki successfull in India but failure abroad

3. Toyota when came to India there qualis was a hit but whereas elsewhere it was a big flop.

Above are few examples.

We dont go by want the product is but go by a wave.

I guess it's fear. How many times have we heard the "Fiat car's are really good but it's Fiat..pata nahin spares aur service milega ke nahi?"

I will give you two recent examples.

Someone I know in my work related circle was visiting my work place. His company had bought a ANHC for him. I asked him about the car. He said it's a good car, easy to drive (note the word easy and not fun) but has horrible ground clearence. His words "the office parking lot has basement parking and when I am driving out of it, the car scrapes the bottom. This happens everyday!" We struck a deal. I would drive the City and he would drive the Punto. Honestly, I loved the City's I-Vtec engine. Never expereinced such a smooth engine till today in any car from 0 to 10 lakhs. Drove it and the engine worked well. Can't comment on steering but the car seemed to thud and thrash through bad roads. My friend said the same "Suspension could have been quieter'. That's when I told him "I love this engine and you know what, you may not like the Punto's diesel engine because of the higher noise and typical diesel reluctance until turbo spool up.

Now he drives the Punto and instantly loves the way it drives. His words "Amit, why did you say I will not like the engine? It's quite rev happy 'rpm mast badhta hai for a diesel'. He drives on and then comment's farak pata chalta hai suspension mein. Bahut smooth hai , pot holes ka pata hi nahi chalta hai. Would he buy it as a personal car? I like it but Amit, it's a fiat. There you go. Story ends!

A guy started a conversation with me on the Punto.

Him: How is this car? How is the performance?
Me: Car is fantastic and performance is adequate.
Him: What about mileage?
Me: 18-19kmpl.
Him: Wow! That's really good.
Me: Mine is a diesel.
Him: I am planning to buy a petrol but was advised that Fiat cars are not good and they are not successful in the market.
Me: Who advised you? Have they ever owned a Fiat?
Him: No!
Me: I had a Palio S10 with a 1.6L 100bhp engine.
Him: Yes I noticed you many times and then I saw you in a Punto so I thought of asking you as you have owned 2 Fiat's.
Me: If I after owning a 100bhp Palio find the Punto's performance adequate then how come people who have never owned a Fiat feel it's not good?
Him: Haan. Yeh baat to sahi hai. The engine is 1.3 right?
Me: It's a 1.3 diesel and 1.4 Petrol.
Him: Oh. I want to buy petrol. If I get 18-19 I am happy.
Me: Petrol will not give you so much. It should be about 13-14.
Him: But you said you get 19?
Me: Mine is diesel. Any diesel will give you more mileage then petrol.
Him: Oh is that so? That's good to know!

Also, many people simply go by how many cars they can see on the road. So many Swift's - it must be a great car. Very few Punto's - must be some problem that's why nobody buys.

This is not restricted to India only. Normally people want to play safe specially purchase of higher amount products . Cars is second most expensive after home in normal person's life. So here one can't take chance. Also success depends on nature of market . Maruti-Suzuki is successful in India because of its product range which directly address the masses of indian car buyers. It has been able to fulfill the needs of different segements . They are masters in producing small cars for mass .

I like to ask everyone - Howmany of us would purchase petrol cars of Tata & Fiat against the purchase of diesel cars of Tata & Fiat ? I think 90% will opt for diesel although petrol engines are equally comparable !!

Ashish, there is no arguement on what you are saying. For reasons well known to the whole country, Fiat has goofed up badly in the past and are paying for their sins. When the Uno was launched, they got over 3 lakh bookings despite offering a outdated car compared to the Santro at that time.

Isn't it weird that you say that Maruti is a master in producing small cars for the masses. Ironically, so is Fiat in Europe!

How many would buy a Fiat petrol? If the Punto 1.4 T-Jet was on offer, I would have it parked in my driveway today. I will pick the T-Jet even over the 1.3 MJD VGT 90bhp engine.

The next generation Multiair petrol engines are a gem.

See http://www.fptmultiair.com/ for full details.

http://www.carmagazine.co.uk/News/Search-Results/Industry-News/Tomorrows-world-Fiats-MultiAir-engine-tech/

http://hubpages.com/hub/how-does-the-MULTIAIR-fiat-works

From the above source:

Fiat, however, at least in the short term, will not sell the patent to a third party as happened to the Common Rail. But the car will use exclusively on its own group or at most it will sell a license to use "to its partners.

@ Amit , when you say that GP with T-jet would be good buy , it will be only for niche market unless price it properly. Infact Linea will be coming with T-jet 115 bhp very soon. Here the point is not about product superiority but it is about how Fiat capitalise on better products.No doubt Fiat is trying hard to improve its image.

I doubt whether Fiat enjoys the same market share in Europe like Maruti in India although both are having good small cars.

Europe is already matured market with various players buzzing all their top products to be on top. Fiat to manage good position in that market is a good achivement.

On the other hand in India , I would still say its quite an easy for Maruti to retain its position since they are hardly been challanged by other car manufecturers. tell me How many companies compiete in India vis a vis in Europe??

Wait for 5 to 6 years , with Nissan/Renult/VW & few more enter the market & Maruti share is bound to get reduced. But its long way to go for that day as of now.

@ Satish Master ,

I already have mentioned -  ALSO SUCCESS DEPENDS ON NATURE OF MARKET .

Yes Europe is a mature market & ours is still developing market mainly consist of sub 5 -6 lacs segment. That where Maruti is ruling. Second Maruti has been here for almost 25 years where as others have started very late. That also makes difference.

Indian market is bound to change but for that others have to put in extra efforts in terms of promotions ( Recent VW ad in TOI ) , ASS , technology & price .