Slumping Sales Push Fiat India To Cut Prices Across Model Range

While most manufacturers tend to increase prices around the new calendar year, Fiat Chrysler has chosen to do just the opposite! It has dropped prices for the 2017 models with immediate effect. Prices for the Fiat Linea have reduced by 7.3 per cent. The Avventura is cheaper by 7.8 per cent, while prices on the Punto Evo have reduced by 7 per cent. Prices of the Urban Cross and Abarth Punto remain unchanged.

With the rejigging of prices, the 2017 Linea now starts at Rs. 7.25 lakh, a difference of Rs. 57,126 over the 2016 edition, and tops out at Rs. 9.99 lakh for the range-topping diesel that gets a massive cut of Rs. 77,121. Similarly, the 2017 Punto Evo now starts at Rs. 5.45 lakh, a drop of Rs. 40,568 over last year's model, and tops out at Rs. 7.55 lakh for the top-end diesel Emotion trim, which is now Rs. 37,263 cheaper (all prices, ex-showroom Delhi).

Fiat Linea 125 S

A major reason for Fiat's dramatic step has been the disappointing sales figures month-after-month. Despite new launches last year, mainly the Urban Cross and Jeep brand, the company has seen less than favourable numbers, and, as a result, a price revision has come into effect. This not only takes a hit at Fiat India's profitability but is also a dent on its reputation as well.

From June to November 2016, Fiat sold a total of 3328 units, which is nearly 20 per cent down over June-Nov 2015. This includes 74 units of the Abarth Punto, while the Fiat Punto Evo and Avventura collectively sold 2679 units. The Linea wasn't any better, selling a total of 575 units between June and November 2016. In comparison, segment bestsellers Honda City and Maruti Suzuki Ciaz averaged 5000 units every month over the Linea. And the Maruti Swift and Hyundai i20 lead in the hatchback space, each averaging well over 8000 units a month.

Abarth Punto

The price revision seems to be the first step towards a course correction. The other complaints have been on the after sales and service side as well - including higher cost of ownership that the company plans to address this year. Commenting on the price revision, Kevin Flynn, President and Managing Director, FCA India said, "2017 is a significant year for FCA as we enter a new phase of growth with both our brands - Fiat and Jeep. We want to make this the year of our transformation in our approach towards engaging with existing customers and winning new ones. This thought led us to start the new year by enhancing the value proposition on our feature-rich Linea and Punto EVO, as the first step. This year, we will move the needle on our sales and service network for which we have started implementing significant changes."

Fiat Destination Store - Mumbai

In its statement, Fiat said it is also training personnel for more quality and efficiency in the service process, while it also plans to make spares available online with door-step delivery. 2017 will also see Fiat expand the new 'Destination Stores', its multi-brand dealership in Delhi, Mumbai, Chennai, Ahmedabad, Kochi and Bengaluru, adding to its existing network. The manufacturer will have Jeep-exclusive as well as Fiat-Abarth-Jeep Destination Stores by mid-year.

2. Fiat Punto Evo

3. Fiat Avventura

4. Fiat Urban Cross