cars

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Fiat 500 launched in India in late July 2008. This lifestyle car is available in several colors and can be changed scale to meet almost anyone’s likings. It is much cheaper than the only counterpart, the Beetle in India and yet failed to impress. Fiat 500 has had great success as a global brand, but it has failed to meet its sales expectations in India. Why?

There are lots of reasons. For starters, it was because Fiat 500 was launched, Indians were not ready for a high price lifestyle car. It was just a matter of bad timing from the Fiat group. The market for these luxury cars are still very niche, and Indian consumers are most looking for value-for-money cars.

Brand image also explains the failure of the Fiat 500 in India. Indians relate a luxury car to the name it is linked it. India is a place where people would buy stripped down versions of luxury cars like BMW and Mercedes, just for namesake. Unfortunately Fiat not spell luxury for Indians. And an expensive four places from Fiat was bound to fall flat with the Indian customers.

Another set of Indian car buyers’ minds is that Fiat has a poor post-purchase service. After sales service has never been one of the great assets of Fiat India. And maintenance of a luxury car as the Fiat 500 would thus be not only expensive but also inconvenient.

Fiat 500 competes with other life style cars as the VW Beetle and BMW Mini. And while the Beetle has managed to sell approximately 284 units in less than five months since launch, but the Fiat 500 has been stuck in a range less than 70, even after two years since launch.

But the company indicates that the Fiat 500 has managed raised image of Fiat in India. “Fiat 500 has helped us enormously in our overall branding exercise because of substantial road presence of the vehicle in India,” added a Fiat official. But we know the truth, and we also understand the numbers better than words.

Fiat 500 launched in India in late July 2008. This lifestyle car is available in several colors and can be changed scale to meet almost anyone’s likings. It is much cheaper than the only counterpart, the Beetle in India and yet failed to impress. Fiat 500 has had great success as a global brand, but it has failed to meet its sales expectations in India. Why?

There are lots of reasons. For starters, it was because Fiat 500 was launched, Indians were not ready for a high price lifestyle car. It was just a matter of bad timing used cars from the Fiat group. The market for these luxury cars are still very niche, and Indian consumers are most looking for value-for-money cars.

Brand image also explains the failure of the Fiat 500 in India. Indians relate a luxury car to the name it is linked it. India is a place where people would buy stripped down versions of luxury cars like BMW and Mercedes, just for namesake. Unfortunately Fiat not spell luxury for Indians. And an expensive four places from Fiat was bound to fall flat with the Indian customers.

Another set of Indian car car rentals buyers’ minds is that Fiat has a poor post-purchase service. After sales service has never been one of the great assets of Fiat India. And maintenance of a luxury car as the Fiat 500 would thus be not only expensive but also inconvenient.

Fiat 500 competes with other life style cars as the VW Beetle and BMW Mini. And while the Beetle has managed to sell approximately 284 units in less than five months since launch, but the Fiat 500 has been stuck in a range less than 70, even after two years since launch.

But used cars the company indicates that the Fiat 500 has managed raised image of Fiat in India. “Fiat 500 has helped us enormously in our overall branding exercise because of substantial road presence of the vehicle in India,” added a Fiat official. But we know the truth, and we also understand the numbers better than words.