After high-end launch, Jeep plans models in Rs10-20 lakh range
06 Sep 2016
After launching the Jeep Grand Cherokee and the Jeep Wrangler at steep prices starting at Rs71.59 lakh going up to Rs1.14 crore, Fiat Chrysler Automobiles India has confirmed that Jeep is developing SUVs priced in the Rs10 lakh to Rs20 lakh range.
Unlike the Jeep Grand Cherokee and the Jeep Wrangler, which are being brought to India as completely built units (CBUs), the new SUVs will be almost fully localised to keep the price low. Jeep is clearly not content with a small market share at the top end.
The SUV in development, in the C segment, has been codenamed 556, and can be expected to launch by August 2017. The new SUV is expected to pip the BMW X1 in terms of equipment, features and specifications. With All-Wheel Drive (AWD) as an option, besides launching in India, it will also be exported to other markets.
The move to introduce high-priced luxury models before launching the locally-built models is to create the luxury car brand image to help drive high-volume sales. Jeep India could not have done the opposite, as it would make it hard for the American-born manufacturer to attain a luxury car brand image.
Besides the 556, Jeep is also developing a B-segment sub-4metre compact SUV, codenamed 526, whose price is expected to begin from Rs10 lakh. This price point will pit the Maruti Vitara Brezza and the Ford EcoSport as rivals to the compact SUV from Jeep.
However, the Jeep compact SUV will be priced at a slight premium compared to these already existing models. It will even boast of additional equipment to keep the Jeep's upmarket image alive as a premium brand.
After the launch of the Jeep brand in India, FCA also expects to export Jeep models from India, manufacturing them from its Ranjangaon facility, where it has invested a huge $280 million. It also expects to achieve a huge localisation that will come as a surprise to both its rivals and buyers.
There already are plans to open 10 new dealerships covering nine cities before 2016 draws to an end. While the Ahmedabad dealership has begun its operations, the Mumbai dealership is expected to showcase both Fiat and Jeep products under one roof. (See: Fiat set to launch Jeep Wrangler, Cherokee in India).
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