Tata may market Fiat brands in India

MUMBAI: Tata Motors may market Fiat's luxury brands like Alfa Romeo, Lancia and sports cars Ferrari and Maserati in India. As part of their global joint venture, Tata Motors and Italian car giant Fiat SpA work across various divisions and segments in the automobile industry. The two automobile giants are said to be in discussions to fork out a strategy, which could see Tata Motors begin distribution of powerhouses like the Alfa Romeo and Lancia first and then move on to super cars like Ferrari by 2010.
Speaking to TOI, Farhaad Vijay Arora, marketing head for Ferrari and Maserati cars in India, said, "There is a proposal being mooted on these lines, but nothing has been finalised as of now." He declined to give a time-frame by when a decision on this will be made.
Ferrari and Maserati brand of cars are imported in India through National Garage, its exclusive distributor, who also provides after sales support.
According to sources, it was Tata Motors' suggestion to bring in Fiat's high-end luxury brands to India. Tata currently manages the marketing, distribution and after sales for Fiat's passenger car division, which includes the Palio brand. While Arora declined to take any names who are involved with the discussions, sources said that the current stage of negotiations are being held between chairmans' office at Tata Motors and senior officials at Fiat SpA and Ferrari.
The Lancia and Alfa Romeo's price tag begins from Rs 50 lakh going up to Rs one crore, while the Ferrari range begins only above Rs two crore. About 36 Ferrari and 10 Maserati currently scorch the Indian streets.
However, the current marketing is aimed at a select client with sales being made only by invitations. However, if the proposal to market these cars through Tata Motors goes through, it might no longer be an exclusive club, say experts as it will be there in showrooms across the country.
Tatas would have to set up a separate distribution channel for these cars as marketing and supporting these intricate machines is a different ball game altogether. Some industry experts feel that there could be a downside to Tata's taking over the marketing of these high end brands.
"Tata Motors has been a mass market car maker and distributor and this image might have a negative impact when it wants to sell a Rs 2 crore Ferrari," an expert said. Besides Tata will have to pump in a significant amount of investment as each showroom for these cars could cost upwards of Rs 30 crore.