Fiat bets on Compass to gain market share in India
Compass: A device used to find directions.
That’s too apt a name for the upcoming model from Fiat Chrysler Automobiles (FCA) group in India, which has struggled to gain market share in the country.
The Detroit-headquartered FCA has three brands in India — Fiat, Abarth and Jeep. Neither Fiat’s Linea and Punto, nor its big performance brand Abarth have managed to race in the market.
All eyes are therefore now on Jeep, the sport utility vehicle brand, which entered India last year with two imported SUVs — the Wrangler (₹72 lakh) and Grand Cherokee (₹93.64 lakh to 1.12 crore).
And months before launching the first Made in India Jeep Compass in the country, Kevin Flynn, president and MD, FCA India, is anxious and hopeful of a turnaround.
“I’m incredibly excited by it. It’s a global launch, not just in India. We are one of the four global locations that will manufacture the same car. It’s very important and critical for our success,” Flynn told HT. “And jumping on the ‘Make in India’ philosophy, the Compass will play a significant part in the segment.”
The production of Compass will start by June at the Ranjangaon plant near Pune in Maharashtra, which is a 50:50 joint venture with Tata Motors. The company plans to launch the SUV in the third quarter of 2017-18, ahead of the festive season in India.
FCA has invested around $280 million in the plant, which is slated to manufacture 160,000 units annually. Though the plant will be an export base to markets, including the UK,Japan, Australia, South Africa and New Zealand, the first products off the line will be for India, Flynn said. “There are plans” to make more Jeeps at Ranjangaon, he added.
But as Jeep takes front seat of FCA India, what happens to Fiat and Abarth?
“We need to find replacements for those models (Punto and Linea) now. As soon as we get a solution that is going to work and sustain, we’ll do that. We’re very singular in our approach, and this year it’s the Compass,” Flynn said.