Fiat India, the Indian subsidiary of the Italian auto manufacturer has announced its decision to end the sales and distribution agreement with the Indian car major Tata Motors. The company plans to manage its operations in India through a Fiat owned company which will manage the commercial and distribution of the Fiat car models. The decision is reported to be a result of a decline in the company’s sales.
Taking matters into its own hands, Fiat India will establish a new entity to handle the management of the company’s operations which will be headed by Mr. Enrico Anatasio Senior Vice-President (Commercial) Fiat India. Commenting on the development, Mr. Anatasio stated that the new Fiat owned company is expected to enable Fiat with greater focus on enhancing the Fiat brand in the Indian market.
Despite the end of the distribution tie-up between Tata Motors and Fiat, the manufacturing agreement under which Fiat supplies cars and engines to Tata Motors will continue as it is. Meanwhile, Fiat has plans to set up its own dealerships across 20 identified places in India and has initiated the process with the inauguration of a boutique showroom in New Delhi.