Can Jeep revive Fiat’s fortunes in India with made-in-India SUV?

NEWDELHI: Fiat Chrysler Automobiles or FCA-owned Jeep unveiled its made-in-India sports utility vehicle (SUV), Compass, in India, on Wednesday. Production of the vehicle will start from June, the company said. It did not disclose the price of the model.

The Compass would be the first “made-in-India” Jeep to be produced at the company’s plant at Ranjangaon in Maharashtra.

“The car looks good and even the pricing can be great. But it makes no sense till the time Jeep Compass sells well. The Compass will be the make or break model for FCA in India, said Anil Sharma, analyst, IHS Markit.

The move to introduce a locally developed model in the country signals Fiat’s renewed interest in the Indian market, where it has met with little success despite a long association. After having sold its popular models such as Uno and Fiat 1100 or Padmini through a licensing agreement with Premier Automobile Ltd, Fiat set up its Indian subsidiary in 1997. In 2006, it signed an agreement with Tata Motors to jointly manufacture and sell cars in the country. However, in 2012, it decided to call off the alliance and go solo.

Currently, Fiat India’s line-up includes hatchbacks Punto, Abarth Punto; mid-size sedan Linea, crosshatches Avventura, Abarth Avventura and Fiat Urban Cross, and a ₹30-lakh sports hatch Abarth 595. Such niche products and the rise of rival models has hit Fiat’s market share in India. The company currently has a miniscule 0.1% share of the Indian market, with sales falling from 712 in March 2016 to 353 in March 2017.

“The export as well as India models of the Jeep Compass will be identical (to the global model) in built and quality,” FCA India president Kevin Flynn said.

“If FCA manages to price it right, it will be a fortune-maker for them in India,” said Amit Kaushik, MD at consulting firm Urban Science.

Sharma of IHS said if it is priced between ₹15 and ₹20 lakh, the Compass will attract customers from the ₹12-15 lakh segment of the Mahindra XUV500, Hyundai Creta, Nissan Terrano, Tata Hexa, and also encourage buyers of BMW X1 and Audi Q3 to settle for a relatively newer badge.