EXITED INDIA TOO SOON, BUT WON’T ENTER NOW: ROGERS
One of the world’s best known investment gurus, Jim Rogers of Rogers Holdings and Beeland Interests said he may have been too hasty in exiting India in 2015, but he won’t enter it now when the markets are at record highs.
He says he was surprised that the government managed to get the legislation for the Goods and Services Tax through. “It is a historic move as this has been a contentious issue among politicians for several years.
Rogers said that in addition to GST, he has also been tracking the Indian stock market, the best performing of the world’s 10 largest stock markets thus far in 2017. “I see that the markets are at an all-time high, currency is going up – they are making new highs without me, and that does not make me happy.”
Keen as he is to enter India, Rogers says he will wait because it doesn’t make sense to enter a market when it is on a high. “I don’t want to jump on to a moving train. When you jump on to a moving train, you’ll get hurt.”
Rogers, a hedge fund manager whose investments serve as leads for many other investors, has long been an India bear. In 2014, though, soon after the Narendra Modi led National Democratic Alliance (NDA) came to power, he changed his tune.
“First I was interested in India because of his (Modi’s) record and what he said he planned to do... But he (Modi) did nothing much for two years, and I sold. Unfortunately, I sold too soon,” he said.
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.