Fiat ends distribution pact with Tata Motors

Published - April 12, 2013 01:08 am IST - MUMBAI:

The cars made by Italian automobile giant Fiat in India, through its Indian subsidiary Fiat Group Automobiles India Private Ltd. (FGAIPL), will no longer be distributed by Tata Motors.

FGAIPL on Wednesday announced the completion of the dissolution of the distribution agreement with Tata Motors.

A statement from Fiat said FGAIPL would now independently control all commercial activities including marketing, sales, distribution and after sales services of Fiat vehicles in India.

The six-year sales and distribution joint venture between the two companies ended in May 2012, and Fiat has since established 51 dealerships and workshops, which it plans to take to 112 by end-2013.

The company at present sells the Fiat Linea and Punto models made at the Tata-Fiat joint venture.

Fiat Group has established National Sales Company (NSC) as an independent entity within the Fiat Chrysler India operations through which exclusive Fiat dealerships will be established.

FGAIPL has set up a warehouse close to Ranjangaon manufacturing plant near Pune that can stock up to 6,000 different parts and a 12-acre stockyard which can store 2,000 vehicles.

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