AgTalk | Linea starts a new chapter of FIAT's journey: Basavanhalli

Since he joined Chrysler in 1994, Nagesh Basavanhalli has held numerous positions of increasing responsibility in engineering and product planning. He holds a Bachelor of Science in Mechanical Engineering from Bangalore University; a Master of Science from the University of Texas; and, an MBA from the University of Chicago Business School where he was awarded the "Booth India Business Leader - 2009" by Chicago Booth Business School. To strengthen its business position in India, FIAT Group Automobiles India Private Limited (FGAIPL) and Chrysler India Automotive Private Limited (CIAPL) appointed Basavanhalli as President and Managing Director for FIAT and Chrysler India operations  in April last year. Previously, as head of CIAPL, Basavanhalli was responsible for FIAT and Chrysler's APAC (Asia Pacific) Technical Center located in Chennai, India.

While in conversation with Adgully, Nagesh Basavanhalli, President & Managing Director-FIAT Chrysler India Operations shared FIAT India related plans, about their product line-up for the year and how they intend strengthening their position in India.

Nagesh Basavanhalli (NB): New Linea car is longest in the segment with best in class ground clearance and is richly loaded with premium features usually found in cars in higher segments. With the launch of New Linea, we are optimistic about our growth in the Indian market and are strengthening our commitment to our existing as well as prospective customers. The launch of the New Linea is a start of a new chapter of FIAT India’s journey in the country. The car also sets new benchmarks in the areas of performance, safety, comfort, ride, handling and in-car infotainment.

AG: How was year 2013 for you? Please share your perspective on the same.

NB: We have used year 2013 to establish ourselves in the market as standalone entity prior to which we worked with Tata Motors in the distribution set up. 2013 was all about setting up a network and getting basics in place. Without really having a new product, last year we invested in network and dealers have invested for us in new markets and we set up the base now. Each of the products which we will be announcing this year has gone through loads of research in terms of competitive benchmarking both on product and pricing. Now it’s time for our products to enter the market.

AG: Is there any specific strategy that FIAT group follows?

NB: Last year in April 2013 we started with 3 pillar strategies – Network, Brand and Product and we will continue to follow the same in future.

AG: How strong are you placed in tier II and tier III cities?

NB: We are already there in tier II and tier III cities, so we understand that India has a huge geography and people do not find it convenient to travel long distances to buy the car or get the car serviced. So, we understand that it’s a critical aspect of setting up a distribution so there is a need of certain threshold of distribution that is necessary in the market. You need to be present in top 35-40 cities to have a base and then you can expand once you have a right product base and a wider product portfolio.

AG: In 2012, FIAT announced their launch of Jeep Grand Cherokee and Wrangler. When are both models expected to make their debut in the Indian market?

NB: The idea was to cover the entire range of SUVs under the Jeep brand. There are so many uncertainties in this market and you get only one chance to introduce a brand like that. Presently, the auto industry is experiencing sluggish sales, the worst in 11 years. We have deferred the introduction of Jeep and not cancelled it, it will take some time.

AG: Please share with us the product line-up likely to be launched this year?

NB: We are still on our target to bring in nine products. We launched the first one last year, Linea Classic. The second one was New Linea that was launched earlier this month. Other products that will be introduced around November- December 2014 include the Avventura, New Punto and Abarth 500.

AG: FIAT is a global brand, so was there any key learning from the western market which helped you strengthen your position in India?

NB: In the automotive industry, product strategy is a key part. For us to get the product in India and expand our coverage is really important. We started out with Linea, and now Avventura, a contemporary urban vehicle which will be a new segment for us- utility vehicle segment, will be a new car just for the Indian market. This will be followed by Punto and Abarth 500. We make sure that product coverage is right so now we go from a C low segment which is Classic to C high which is a Linea to B plus Punto, to utility segment Avventura and to enthusiast vehicle segment Abartha 500. We are significantly expandable in terms of coverage and that was fundamental lessons learned to cater wider spectrum of audience in India. 

AG: What kind of competition do you see in the Indian market and what’s your edge over competition? 

NB: We believe that our products will speak it all. When a person drives our vehicles- feature, technology and styling speaks it all and we believe it will resonate with the market. When it comes to pricing, we have priced it in the heart of the segment and aggressively. We will issue our commitments to India, we wanted to be here and wanted to be here aggressively. The market for our industry is sluggish nowadays but we will be competitive in this market.

AG: Can you share with us the milestones achieved by FIAT in the recent past?

NB: I think the biggest one is, building 108 dealerships in one year and it is a record time in India. Loads of effort went in from dealers and our end to make it a success.

AG: How is brand FIAT placed in India today?

NB: With 108 dealerships across 81 cites and 22 states in India, we are pretty much across the length and breadth of the country and we will continue and  probably go up to 150 dealerships. We have grown from market coverage of 22 percent to 45 percent.

AG: What are your key markets?

NB: We are a strong player in Europe and South America. We are growing in North America and in Asia, India is the strong market for us.

AG: Please share with us your marketing strategies?

NB: Post April 1st last year what we did was we engaged more with our customer base and we realized that customers who were part of FIAT’s table may have stepped away since last 20-30 years so we kept talking to them . We did 360 degree campaign majorly on Television and Print. We are also doing loads of ground level activities to reach out to our customers.

AG: How well are you placed in the digital and social media space?

NB: It’s important and relevant to be on digital space today. For us Facebook along with Twitter have been the medium to engage with our customers. Facebook was a place where we could interact with our customers on fan base which since the last 12 months has soared from zero to six hundred thousand today and the growth of the fan base also demonstrates the customer’s willingness to engage with us. FIAT as a brand evokes lot of passion, so for us to bring that brand back to the consumer who loved the brand earlier was and is a challenge. Through social media we do loads of activities that resonate with customers.

AG: How are you looking at year 2014 in terms of growth and plan?

NB: We are hoping that second half of 2014 would be a great year for us. We are hoping that market segment and consumer sentiments will improve.  The company in India will have around 100 employees and plans to target 150 dealers by the end of 2014.