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Old 5th January 2021, 09:44   #1
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FCA to invest $250 million in India; to launch 4 new SUVs

4 more SUVs to be launched under Jeep brand.

https://www.deccanherald.com/busines...vs-935319.html
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Old 5th January 2021, 11:35   #2
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FCA to invest $250 million in India; to launch 4 new SUVs

Fiat Chrysler Automobiles (FCA) is planning to invest US$ 250 million in its India unit, taking its total investment in the country to over US$ 700 million. The company has also announced that over the next 2 years, Jeep will launch four new SUVs in the Indian market.

FCA to invest 0 million in India; to launch 4 new SUVs-2017jeepcompass02.jpg

With the fresh investment, Jeep plans to manufacture a mid-size 3-row SUV in India. The new 7-seater SUV is expected to compete with the Ford Endeavour and Toyota Fortuner.

Jeep will also assemble the Wrangler and Grand Cherokee in India. At present, both models are imported as completely built units (CBU). Shifting to CKD assembly would enable Jeep to price the SUVs more competitively.

This year, Jeep will introduce the Compass facelift. The SUV is scheduled to be unveiled on January 7, 2021. The updated Compass features subtle exterior changes. On the inside, the SUV gets a redesigned dashboard with a floating 10.1-inch touchscreen infotainment head-unit that gets Amazon Alexa support, Apple CarPlay and Android Auto connectivity and can receive over-the-air updates.

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Last edited by TusharK : 5th January 2021 at 11:37.
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Old 5th January 2021, 12:10   #3
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Re: FCA to invest $250 million in India; to launch 4 new SUVs

I would say it is a delayed response considering the initial brand momentum that the FCA ignored while the Jeep compass was launched.

They should have planned new launches on seeing the Compass's initial success, now they have to rebuild that momentum which they are failing to do so with minor upgrades (2021 facelift) and trailhawk edition.

That said, better late than never.
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Old 5th January 2021, 12:16   #4
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Re: FCA to invest $250 million in India; to launch 4 new SUVs

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Originally Posted by saikarthik View Post
I would say it is a delayed response considering the initial brand momentum that the FCA ignored while the Jeep compass was launched.

They should have planned new launches on seeing the Compass's initial success, now they have to rebuild that momentum which they are failing to do so with minor upgrades (2021 facelift) and trailhawk edition.

That said, better late than never.
What possible new launches are we talking about here? The only other model in their lineup that is affordable to Indians (in the mass market) is the Renegade. And it is hardly cheaper than the Compass.

So all they can do is develop models specific to India. Which is what they are doing with the 8 seater Compass. Or possibly a chopped and stripped Renegade to keep it in the 10-15L range.

There is nothing else they could do here in India with their current lineup.
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Old 5th January 2021, 12:49   #5
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Re: FCA to invest $250 million in India; to launch 4 new SUVs

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Originally Posted by dragonfire View Post
What possible new launches are we talking about here?

So all they can do is develop models specific to India.
Exactly this! They should have considered possible future model development specific to developing markets while they were launching the Compass in first place.

Not comparing to Kia or MG, but they came to India with one product but with some more in their mind and the momentum keeps on building.

That is how a brand survives unless they have a product which is block buster for any given time in next 5-6 years spewing out good numbers on sale charts.
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Old 5th January 2021, 12:50   #6
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Re: FCA to invest $250 million in India; to launch 4 new SUVs

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Originally Posted by dragonfire View Post
What possible new launches are we talking about here?
Nothing relevant. From what is getting reported on different media channels -

1. Compass facelift
2. CKD Wrangler
3. Compass based 7-seater.
4. CKD next generation Grand Cherokee.

Looks like Jeep has taken note of Mahindra's success with the Thar and hence trying to reduce a little bit of sticker price on the Wrangler. Otherwise, it is only Compass variants coming our way for the next two years. I see this simply as a PR exercise ahead of Compass facelift launch this month.

Even the sub-4m crossover is coming only after 2 years! Citroen will also be faster to the market than FCA.
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Old 5th January 2021, 13:03   #7
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Re: FCA to invest $250 million in India; to launch 4 new SUVs

Not to sound like a spoilsport, but GM India made similar claims about investing in India just a year before they pulled the plug. Not too long ago, the Punto and the linea were withdrawn from the market and its only the Compass in various iterations that is doing the rounds now.
We live in a crazy world where even the mighty Honda is withdrawing the civic and CRV which makes me wonder about the intentions of Chrysler. My personal preferences are European, American, TATA, Japanese, Koreans and the rest of Indian car makers in that order. If FCA is seriously committed, no one will be more happier than me, but are they pulling a GM move in India is the bigger question.
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Old 5th January 2021, 13:21   #8
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Re: FCA to invest $250 million in India; to launch 4 new SUVs

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Originally Posted by dragonfire View Post
What possible new launches are we talking about here? The only other model in their lineup that is affordable to Indians (in the mass market) is the Renegade. And it is hardly cheaper than the Compass.

There is nothing else they could do here in India with their current lineup.
To address the question of affordability that you rightly raised, aside from the Renegade, FCA India says they may consider getting FIAT branded cars back in India. Now that's a lot of new year optimism and something for Fiat fans to rejoice but its all in the air until we actually see those launches from Jeep (likely) or Fiat (very unlikely IMO for next 2-3 years at least). I feel FCA will focus all its energy on Jeep with these planned four launches in next few years and if they do well, there is a chance they may even consider comeback for Fiat or other brands. There's also an affordable product from Citroen on the cards for FCA group to monitor. So I'm really hopeful FCA-PSA jointly will have a mass market product or two in coming years.

To quote Partha Datta, MD FCA India from his recent interview with Economic Times

"Fiat as a brand has not gone out of the Indian market. I want to be very categorical in this that Fiat brand is a part of the FCA India portfolio. When and if the time is right, and the right product needs to come into the market, Fiat will (come back). We are constantly figuring out what additions to the product portfolio we can make, whatever the brand, to come into the market.”

Source
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Old 5th January 2021, 14:18   #9
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Re: FCA to invest $250 million in India; to launch 4 new SUVs

The news seems to be the usual gaga and stereotype new year babbling by executives and auto magazines alike. Panda could have been "the first mover" for Fiat to establish in a growing small SUV segment, but then it's Fiat's expertise to blow the opportunities.

I don't see anything apart from Compass facelift and 7-seater experiment to hit the road this year. IMHO Peugeot-Fiat merger is the only hope to improve offerings in our market (Citroen, Opel). I will take this news with tons of salt
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Old 5th January 2021, 15:54   #10
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Re: FCA to invest $250 million in India; to launch 4 new SUVs

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Originally Posted by camitesh View Post
To address the question of affordability that you rightly raised, aside from the Renegade, FCA India says they may consider getting FIAT branded cars back in India.
They are playing with fire. If they are still going to play the value card, that means they have not learnt their lesson. The Punto was a fantastic car, but they tried to make it affordable by cutting corners, putting cheap parts and got nowhere. Ended up ruining any brand image it had.

Every manufacturer who tried to play the value card ended up destroying the brand name. Be it Honda, Toyota, Ford or Chevrolet.

FCA should admit that they don't have many cars in their kitty for India's mass market. They would and should remain a niche player. If they really want to compete with Maruti and Hyundai (again), they should develop cheap cars under a different brand name, which am sure Stellantis (whatever that means) has no dearth of.
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Old 5th January 2021, 20:16   #11
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Re: FCA to invest $250 million in India; to launch 4 new SUVs

Yes, I agree, they should focus on being niche.
For starters, they should have BS-6 version of Abarth Punto back in the showroom .
Add more products to portfolio, more offerings means more people come in into the showroom.
Practically with only 1 Car in the showroom, nothings' gonna happen.
They have everything they need, and yet they can't put everything together to succeed

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Originally Posted by dragonfire View Post
FCA should admit that they don't have many cars in their kitty for India's mass market. They would and should remain a niche player.
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Old 6th January 2021, 07:43   #12
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Re: FCA to invest $250 million in India; to launch 4 new SUVs

Quote:
Originally Posted by CrAzY dRiVeR View Post
Nothing relevant. From what is getting reported on different media channels -

1. Compass facelift
2. CKD Wrangler
3. Compass based 7-seater.
4. CKD next generation Grand Cherokee.
I am greatly looking forward to the CKD Wrangler . A CKD Wrangler = 35 - 40 lakh price for new = ~20 lakhs in the used market. As my next Jeep, I'd sure love to pick up a pre-worshipped Wrangler over a new Thar, if & when.

But nothing of the list you shared makes it a 1800-crore rupee investment IMHO ($250 million).

Last edited by GTO : 6th January 2021 at 07:44.
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Old 10th January 2021, 06:08   #13
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FCA to assemble Jeep Wrangler & the Grand Cherokee in India in 2021

Dr. Partha Datta, President & Managing Director of FCA India in an interview with Hormazd Sorabjee, Editor of Autocar India on January 4th, 2021 announced that FCA India will commence assembling the Jeep Wrangler & the next-generation Jeep Grand Cherokee in India.

He further said that FCA India will launch a 3 row, 7 seater Jeep SUV in 2022 in India (this could be a totally new India specific platform). FCA India also plans to launch a sub 4 meter SUV by 2022/23.

Looks like the ever-increasing action in the SUV segment has forced FCA to take this decision; the question is how much will it impact the ex-showroom price of the Wrangler. It's currently priced at Rs 63 lacs (ex-showroom - Sahara) & Rs 69 lacs (ex-showroom - Rubicon). If the prices come down to around Rs 55 lacs then it could be a very interesting marketplace with the newly 2021 overpriced Fortuner & the Indian assembled Wrangler though in all fairness these two products don't compete directly still it could spur some serious competition in the segment.

Let the fun begin….


Last edited by Vikram Arya : 10th January 2021 at 06:28. Reason: Addition of content
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Old 10th January 2021, 09:46   #14
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Re: FCA to assemble Jeep Wrangler & the Grand Cherokee in India in 2021

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Originally Posted by Vikram Arya View Post
Dr. Partha Datta, President & Managing Director of FCA India in an interview with Hormazd Sorabjee, Editor of Autocar India on January 4th, 2021 announced that FCA India will commence assembling the Jeep Wrangler & the next-generation Jeep Grand Cherokee in India.

He further said that FCA India will launch a 3 row, 7 seater Jeep SUV in 2022 in India (this could be a totally new India specific platform). FCA India also plans to launch a sub 4 meter SUV by 2022/23.
This is indeed a welcome movement and a sigh of relief for the current owners. No more rumours about FCA exiting Indian market. This will instill confidence in potential buyers.

Most likely, the sub 4 meter SUV would be next gen Renegade.
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Old 10th January 2021, 11:11   #15
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Re: FCA to invest $250 million in India; to launch 4 new SUVs

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Originally Posted by TusharK View Post
Fiat Chrysler Automobiles (FCA) is planning to invest US$ 250 million in its India unit, taking its total investment in the country to over US$ 700 million. The company has also announced that over the next 2 years, Jeep will launch four new SUVs in the Indian market.

With the fresh investment, Jeep plans to manufacture a mid-size 3-row SUV in India.... Jeep will also assemble the Wrangler and Grand Cherokee in India. At present, both models are imported as completely built units (CBU). Shifting to CKD assembly would enable Jeep to price the SUVs more competitively.
Quote:
Originally Posted by saikarthik View Post
Exactly this! They should have considered possible future model development specific to developing markets while they were launching the Compass in first place.

That is how a brand survives unless they have a product which is block buster for any given time in next 5-6 years spewing out good numbers on sale charts.
Quote:
Originally Posted by CrAzY dRiVeR View Post
Nothing relevant. From what is getting reported on different media channels... Otherwise, it is only Compass variants coming our way for the next two years. I see this simply as a PR exercise ahead of Compass facelift launch this month.

Even the sub-4m crossover is coming only after 2 years! Citroen will also be faster to the market than FCA.
Quote:
Originally Posted by GTO View Post
But nothing of the list you shared makes it a 1800-crore rupee investment IMHO ($250 million).
Following points came to my mind when I read this news and your comments :

1. While launching new products in India, FCA might try to develop India as low cost manufacturing base for exports to selected markets.

Otherwise, this will be dud investment. Even if FCA profits around 6~10L per vehicle, they need to sell around 25,000 vehicles to break-even. Given the history, that's far away in Indian market.

2. It's just an enticement to potential customers for future longevity of FCA in India. Given so many options, potential customers might be wary to invest in a failing brand.

3. FCA (FIAT) has already lost their market for selling engines. That was something they did with full commitment and then lost it when BS6 came around. So, no support from this business vertical.

Separate point on this diesel thing : Maruti burnt their own hands by going solo, FIAT their own by trying to squeeze Maruti; and many customers lost the fun diesels.
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