NEW DELHI: Jeep,
the iconic US automobile brand that on Tuesday entered India officially with
SUVs costing upwards of Rs 70 lakh, has plans to locally make vehicles that are
being developed with the Indian buyer in mind. With the price tag expected to
be as low as Rs 10 lakh, these models in the works will be pitched against the
likes of Maruti Suzuki Vitara Brezza, Hyundai Creta and Ford EcoSport.
Italian-American
automaker Fiat Chrysler's plan is to build the Jeep brand in India initially
with luxury vehicles such as the Wrangler and Grand Cherokee, and then roll out
the locally made models. The Delhi showroom price of the Wrangler it launched
on Tuesday is Rs 71.59 lakh. The Grand Cherokee costs Rs 93 lakh to Rs 1.14
crore. Both are imported as completely built units.
According to
five people in the know of the company's plans, a C-segment Jeep, which is
internally codenamed 556, is expected to be launched around August next year
and exported to several right-hand drive markets as well from India.
It is likely
to be benchmarked against the BMW X1 and priced at Rs 15-20 lakh. Then, there
will be a more ambitious B-segment Jeep SUV internally codenamed 526,
stretching less than four meters and costing upwards of Rs 10 lakh, giving
direct competition to the Vitara Brezza and EcoSport.
The company
confirmed the plan to produce the C Jeep from 2017, but didn't comment on
products beyond that. Kevin Flynn, managing director of Fiat Chrysler India,
declined to comment on specific price points for localised Jeep, but said:
"The locally made Jeep will be attainable for a significant part of the
market."
On the
potential of exporting vehicles from India, Flynn said: "We are optimistic
and believe that India still wants to leverage its strengths and stands behind
its Make in India programme and being a much sought after manufacturing
location.
" $280 million investment so far
The company
has already brought in two vehicle line directors from Italy and the localised
project is taking concrete shape. The first few hundred units of the C Jeep
will be made by the end of the year and Fiat will test those before rolling it
out of the manufacturing line in Ranjangaon on the outskirts of Pune from the
second half of 2017.
The company
has so far invested $280 million (Rs 1,880 crore) in the new factory to produce
the premium Jeep models. The vehicles will be sold through 10 outlets.
Fiat
Chrysler is likely to position the B-segment Jeep at a little premium over
existing sub-4 metre SUVs such as the EcoSport and Vitara Brezza and below the
likes of Creta and Mahindra Scorpio. The vehicle will be packaged with loads of
features.
"The
smaller B Jeep is a mini-Renegade SUV and it is created largely for markets
like India. The company is planning on annual volumes of about 40,000 to 50,000
units, with some portfolio going to exports market," said a person
involved with the company, speaking on the condition of anonymity.
Gaurav
Vangaal, senior analyst for forecasting at IHS Automotive, said after the India-made
Ford EcoSport's success in the developed world, Jeep's plans of exporting
premium vehicle from India is another feather in the cap of the country as a
manufacturing base.
"The
quality of vehicles made in India is second to none and it is being duly
rewarded by global carmakers, who are bringing in compact premium vehicles,
especially SUVs. The plan not only enables them to tap the large Indian market,
but by combining exports volumes, it allows companies to enjoy economies of
scale and pass on the benefit through attractive pricing," he said.
Source: After
bringing in luxury SUVs, Jeep plans locally-made vehicles in price band of Rs
10-20 lakh