Fiat Chrysler Cars (FCA) has introduced an funding of US$250m to extend gross sales volumes and improve its portfolio within the profitable SUV section in India. It is a signal that the corporate sees India as a stragetic development pole.
The funding is along with the US$450m invested by the corporate in India over the previous 5 years. The corporate intends to introduce subsequent technology Jeep Compass, a three-row SUV, in addition to regionally assembled Jeep Wrangler and Jeep Cherokee. These automobiles will probably be manufactured within the Ranjangaon plant, co-owned by FCA and Tata Motors.
Animesh Kumar, guide at GlobalData, says including new automobiles and native manufacturing will improve the Jeep model, improve localization, scale back prices and increase gross sales.
“The corporate tasted success with sturdy gross sales of Jeep Compass. Nevertheless, it has up to now failed to achieve important market share on account of stiff competitors and restricted product choices,” Kumar says. “FCA presently has lower than 1% share and has solely two automobiles in Indian market – regionally assembled Jeep Compass and the CBU imported Jeep Wrangler.”
Kumar believes the SUV section in India presents important alternatives. “A number of new gamers and fashions have entered the Indian market in latest occasions,” he factors out. “Gamers like Kia and MG Motor have entered the market and now the section boasts of a number of fashions below sub-compact SUVs, compact SUVs and full-size SUVs.
“Although the Indian automotive market has been struggling, function loaded SUVs have proved to be an exception. Nevertheless, there’s a greater demand for inexpensive SUVs just like the compact and sub-compact SUVs.”
See additionally: FCA spending $250m to launch 4 Jeeps in India
