Distortion in pricing of Diesel Linea-both the Emotion variants

Fiat, it seems, has not done its homework properly in fixing the prices of some of its Diesel variants of Linea. The ideal pricing strategy would have been to fix a uniform difference between the respective Petrol and Diesel variants. Since the features and accessories in all the respective variants have been exactly the same, the price difference between Diesel Active and Petrol Active, which is approx. Rs. 90,000, should have been methodically maintained. This, in fact, has been very carefully till the Dynamic Pack variants. The price distortion begins when one observes the pricing of both the Diesel Emotion variants. For instance, in Diesel Emotion, despite keeping this difference of Rs. 90,000 (approx.) as compared to its Petrol counterpart, no alloys have been provided. The customer has to shell out Rs. 25,000 extra for a set of five alloys. This takes the effective price difference between the Diesel Emotion and Petrol Emotion to Rs. 115,000, for which there is no reason and/or justification. Another example is Diesel Emotion Pack variant, which has been provided with the alloys, but the price difference between the Diesel Emotion Pack and Petrol Emotion Pack to Rs. 112,000, thereby broadly covering the cost of alloys. In other words, it means that customers of Diesel Emotion are forced to shell out Rs. 25,000 extra for alloys, which amount, in case of Diesel Emotion marginally reduces to Rs. 22,000. Does it mean that FIAT India intends to penalize Linea customers choosing Diesel Emotion over other variants?

I strongly believe that this is an inadvertent error, because had it not been so, the pricing of Punto would definitely have gone the same way, and happily in case of Punto, which has been launched yesterday, FIAT India has maintained a difference of approx. Rs. 50,000 in all its similar variants of Diesel and Petrol, while still keeping all the features in tact (including the alloys.).

It is hoped that FIAT would remove this discrepancy immediately to prove its credentials as a true customer friendly company.

(All price differences have been taken on the basis of Linea’s ex-showroom prices, as on June 18, 2009