The Two Faces Of Fiat

As globalization forces many firms to function all over the place, some automotive manufacturers attempt to go world by introducing devoted fashions in several markets. Whereas some manufacturers are usually not accessible in each single nation, and a few are even concentrated in a single area, these trying to play an vital function should be current in as many markets as potential so as to survive.

Fiat has been a historic model in Europe and Brazil. It has tried to broaden its presence into different markets corresponding to the US, India, Russia, and China, however in the end most of its operations happen in Europe and South America. Final yr, these two areas accounted for 97 p.c of its world gross sales. The primary accounted for 57 p.c, whereas the second accounted for 40 p.c of the entire. In the remainder of the world, the model has offered round 36,000 models, with no presence in China or India.

However Fiat’s presence in Europe and South America could be very totally different.

Reverse Outcomes

Fiat is understood worldwide for the manufacturing of sensible and fairly small vehicles. At the least, that is the positioning the model has been engaged on for the previous 20 years. Nonetheless, there are large variations between public notion in Italy and Brazil, its two largest markets. Model positioning can also be extraordinarily totally different.

In Italy, the place Fiat offered 21 p.c of all autos final yr, the model is dealing with tough instances. Whereas the Panda and 500 proceed to steer the market and are the benchmark for the A phase, the remainder of the vary can barely compete with the opposite mainstream manufacturers. The model left phase B when it retired the Punto, though this phase nonetheless accounts for 21 p.c of whole registrations as much as August.

The Tipo represented 11 p.c of the entire within the C phase, behind the Volkswagen Golf and the Audi A3. And within the B-SUV phase the place the 500X lives, within the first eight months of this yr it was overtaken by the Ford Puma and the Jeep Renegade. In whole, Fiat’s market share within the Italian passenger automotive market was 14.3 p.c. 5 years in the past, in 2017, its market share was 20.1 p.c and 30 years in the past it was virtually 32 p.c.

The scenario could be very totally different in Brazil, its largest market in 2021. Fiat isn’t solely a pacesetter, however has managed to keep up its market share regardless of the shortage of SUVs (the Pulse and Fastback have been just lately launched) and the arrival of Jeep on this market. This yr, Fiat’s market share remained steady at 22 p.c. 5 years in the past it was 13 p.c and in 2012 it was 23 p.c.

Attraction Carioca

A part of the reason is because of public notion. Fiat is taken into account the best automotive to purchase for the Brazilian public because of its low upkeep prices and powerful service presence throughout the nation. Lastly, it’s nonetheless thought-about a cool model because of the continual presence of latest fashions.

Fiat Brazil has launched 5 totally different fashions previously 5 years. The truth is, the common age of the Brazilian vary (excluding vans) is 3.4 years. In contrast, Fiat Italia presents six totally different fashions whose common age from the yr of introduction in the marketplace is 8.7 years.

The final time the Italian division of this model launched a totally new mannequin was in 2020, when the Fiat 500e was introduced. Earlier than that, Fiat launched the Tipo and the 500X in 2015.

Innovation, consistency in product launches, and reference to shopper wants make Fiat Brasile an instance for the opposite divisions of the model.

The writer of the article, Felipe Munoz, is JATO Dynamics Automotive Trade Specialist.