Rajeev Kapoor, the President and CEO of Fiat India Automobiles Limited, was in Kathmandu recently for the launch of Linea and Punto cars in Nepal. In an interview with New Business Age, Kapoor talked about Fiat’s market prospects in Nepal. Excerpts:

 

You are launching two models of Fiat cars here. What made you choose these two specific models?

These are excellent models and unique in terms of styling, safety and low pollution. We feel that Punto gives the right size and drivability options to small families. On the other hand, Linea is a sedan that is luxurious and has a huge boot space for carrying a lot of bags. It is a very stable car and practically won every award in India. Therefore, they are two very good vehicles to start business with, in Nepal.

 

What is your observation of the market here? Is there any target sales of these two models?

I think we should be able to get around five percent of the market share with these two cars. Then depending on how the models perform here, we can plan an official strategy on introducing other models. We hope that the affordability for buying cars in this country grows. Because it will help us sell more units and give shape to a long-term plan here.

 

How are Fiat’s passenger cars doing in the Indian market?

Fiat is doing very well in India. We sold about 23,000 units last year. The Indian market is growing at around 13 to 14 per cent every year. We also want to grow correspondingly with the Indian market this year. We are already working on a small car to be launched in 2012 end or 2013 beginning. So a lot is happening in India. The market there is becoming very competitive. However, introducing Fiat models in Nepal is a different ballgame altogether because we are not restricted to bring models only from India. Depending on the need, we can introduce models directly from Fiat in Italy as well if the price is right.

 

How do you view the competition with other brands in the Nepali market?

Hyundai is dominantly the market leader in Nepal followed by Toyota and Maruti. There are a host of other brands too. Tata Motors, one of our joint venture partners in India, is also a major player here. The competition is definitely going to be there. And it’s always good to have competition as it makes us agile and focused on keeping the quality and the price parity right.

 

What are the challenges you foresee for the market here?

The most glaring challenge for us is that we are a late entrant. Others have been selling their cars for many years now and are established players. Therefore, we need to carve a niche here. This is why we have introduced these two cars that are absolutely different in touch, feel, look and safety. We need to immediately move forward. That is why instead of only launching the car, we have first worked on strengthening the after sales aspect of it. We have already set up a spare parts and service centre with all the tools required. It is our effort to make sure that customers get immediate after sales service. It’s important because for us, the customers come first. So, we are launching the car after setting everything else in place. The customers can buy our cars without worrying too much about after sales service and availability of spare parts.

 

What is the market response for Fiat cars in the South Asian market compared to American and European markets?

Fiat has many established brands such as Alfa Romeo, Lancia, Maserati and Ferrari. Fiat is very strong in European markets, Brazil and even Turkey. Fiat is now venturing into China and Russia. Indian operation is already running steadily. It is also entering the US market now. A lot is happening in the automotive world. Due to the slowdown in the European, American and Japanese markets, the focus now is on countries like Brazil, Russia, India and China. So, Fiat is also eyeing these ‘action markets’.

 

Do you have any specific plans for the Nepali market?

We are reasonably focused on the Nepali market. We will be engaging ourselves in supporting our dealer here, Batas Brothers Motors, in all possible ways. We will make sure that besides the availability of spare parts and after sales service, we will make the latest models available here. We will make sure that when we plan a product, we will accordingly plan a strategy for Nepal too. I see a great future for Fiat in Nepal. This country is going to grow. As the infrastructure grows, there will be a requirement for more cars. And we want to be here and be a part of it. I can assure you that Nepal will always get the top line products here.