[sheelapratosh]

Originally Posted by aenkay91

About the persisting issues, I think we all can agree that 2% unhappy customers make more noise than the 98% happy ones.

Well I was part of that 2% in the beginning. After using the car for about 2 years&24000kms now, I must say I just don’t have any complaints. In fact, the stability of the car gives me a different level of satisfaction whenever I am on any kind of turf.

But my issue was with the fear of them winding up given the sales numbers. This particular plan gives some sense of hope that they would stick around for some time to come. I really wish they introduce 4x2 Automatic in Compass and introduce a barebones entry level variant to make it accessible for more folks. Killing petrol is really hurting them.

[Cresterk]

The compass isn't a bad car, its well built, it's decently feature loaded in the top trims and it had a very powerful engine at launch. But it's hard to sell a car for 40L when the same car with identical exteriors was sold for 25L a few years ago. All the upgrades have been to the interior while the exteriors have received very few tweaks. A full generational upgrade is needed to refresh the car.

Top it off with expensive maintenance, the lethargic 9 speed auto gearbox and there are just way too many other options available for cheaper, which are all brand new products that people aren't tired of seeing on the roads.

[achyutaghosh]

Originally Posted by aenkay91

The Meridian is leaps and bounds better than the Fortuner in all aspects apart from reliability and resale value.

This is a sweeping statement i believe. Anyways reliability and resale would constitute 50% importance in an Indian car ownership context. Having owned both (and i am referring to Compass here), i would think the Fortuner additionally has the Meridian beat in terms of space, performance, brand value, respect on road, and the ability to take abuse, while the Jeep has better features and ride/handling

[UD17]

Originally Posted by sheelapratosh

But my issue was with the fear of them winding up given the sales numbers. .

They are not going anywhere. Their plant operation is booming:

- selling the engines
- Exporting back to 13 countries
- Mopar supply chain for globe
- Reasonable profit/car + aftersales margins
- Building the Nexon

[low_rider]

I would like to mention my experience here.
Earlier my friend (travel buddy) had a previous gen Scorpio, which I had also driven on outstation trips. Then, when the Trailhawk version was introduced, we saw it and it was leaps and bounds above our humble Scorpio and he bought the Trailhawk and sold the Scorpio. We had lot of fun time in the Trailhawk and it gave a truly premium feel.

Now, I am in the market for an SUV. But, the way XUV, Scorio, Safari have upgraded themselves over past few years, I did not feel that wow effect after taking back to back test drives of XUV and Compass. The Compass did not feel special anymore.

Now, coming to the current 39,999 offer, almost a similar offer is available on BMW 2 series at just 6000 more per month. Why wouldn't someone take that? BMW is a more premium brand any day. Their long term commitment is established and sense of achievement on owning a BMW cannot be matched by Compass/Meridian.

[low_rider]

Just spoke to the Jeep customer care. As usual, they could provide only one liner information "Talk to the Dealer".
Now, this is where it pinches. You are at the mercy of the dealer. The company doesn't even know what is being put up on their website. I asked the customer care person that what if dealer changes his statement/commitment in future? What recourse do I have?
Again no satisfactory reply.

No matter if Jeep Compass is the most superior vehicle out there, I wouldn't like to deal with a Dealer led organisation.

[Kols]

I do not have a crystal ball to predict Jeep's future in India but various MNC organizations, when facing headwinds, set a bottom line cut-off for decisions related to wrapping up or continuing a business. Stellantis/ Jeep will be no different than Ford in that matter. Nature of listed business is more to blame than folks at Stellantis

Coming to the product - Compass. It had a winning launch proposition, by offering a bridge product between the Koreans and Germans. There existed a big gap at that point which no other product addressed. The situation has changed drastically after launch of M&M twins, resulting in market share erosion for Compass/Jeep in 15-30 lacs bracket.

That said, Pricing is not just a number that a manufacturer picks at end-of-line, but a result of various factors. I have tried to provide a simplified list below:

1. Design Cost - Using superior structural elements, drivetrain, body panel specs/tolerances etc. will result in higher cost. Some manufacturers with higher volumes use differentiated design specifications for products sold in India vs Exports. The decisions are purely based on what is valued by their target customer segment (so Kia Seltos not giving a damn about safety ratings is a well though after choice that Kia made for Indian market)
2. Sourcing cost - Within the same design, a manufacturer with higher numbers will be able to source better/cheaper components, resulting in lower cost
3. Manufacturing cost - Within the same design and sourcing channel, a plant with higher numbers will have less overhead running cost/unit. Reason why Fiat & TATAs ended up collaborating
4. Duty structure - Price of car, engine size, class of vehicle can alter the final duty and price of car. This is before the RTO & Insurance kicks in. You end up paying as high as 48-50% duty on a product like Compass! So the manufacturer's return on that product is way lower than what you pay as a customer
5. Distribution margins - Keeping all the above constant, larger players have more control on distribution margins and can strongarm their partners to run on thinner margins in lieu of higher volumes.
6. Manufacturer margins - After all of the above is settled, the final pricing/returns on a products, market share plans, brand premium, are analysed to arrive at final market pricing.

Compare any 3 products such as Seltos, XUV, and Compass on above parameters and you'll realize the rationale behind the way they are all priced.
It may also help to explain why Seltos happens to be the most affordable amongst the three and why XUV-700 being more feature loaded than a Compass (in almost every aspect) is priced better.

Hope the explanation helps detach the two otherwise closely related subjects of Product Pricing and Brand's presence/continuity in any market,

[Nikhildrao]

https://youtu.be/qAZNPZMybvY

This interview by autocar tells us a lot about the jeep attitude. I will re-iterate , jeep will cease to exist within the next 5 years.

[Kosfactor]

^ This fellow appears to be out of touch with reality , I hope his junior staff convinces him to take right decisions.

Aditya calls Grand Cherokee the most celebrated SUV in the world, Stellantis perhaps is its own world. We Indians should be happy that Stellantis has chosen to do business in India - which is what he meant by Jeep assembling 4 products in India.

Very humbled by this interview, All the best to Jeep owners.

By the way this interview looks like an R&R and Appraisal discussion for Aditya than a media interview, Hormazd was well prepared he could see through the 'Jeep' attitude and smilingly destroyed this corporate robot.

[sheelapratosh]

College lectures by professors will be far more interesting. What a pity!! “Synergy”,”strategic”,”customer first” .. all I heard was “blah blah”.

Either the guy was totally jet lagged or it’s yet another day in Jeep world.

[sunikkat]

Jeep has really got problem to survive in India. Brand value wise Jeep is as good as a VW or Skoda. But VAG has invested in lower price bracket and hence will survive. And at higher price bracket very few people buy these over luxury brands - whether it’s Compass, Meridian, Kodiaq, Tiguan or Tucson. So to survive either you have to be a luxury brand or atleast you should have a ~15 lakhs car. Jeep has neither of it in India. Last month even Kodiaq with only Petrol engine sold almost same as Compass. It’s indeed worrying.
What is the real USP of Jeep (Compass or Meridian) now?
Fun to Drive? - The VAG 1.5 is equally fun to drive and more faster than Compass diesel. I am not even getting in to Tiguan range.
Diesel engine? - Tucson has a better performing diesel engine.
Safety? - Again VAG twins have proven safety.
Features? - Hyundai twins kill it here.
Quality? - Tiguan and Kodiaq have equally or better quality.
Tough build SUV? - Fortuner, enough said

And then the negatives of lack of space, perception of service etc. So honestly Jeep is in no man’s land now.

I love Compass, still would be my second choice (after Tiguan / Kodiaq) under 50 lakhs. Compass / Meridian advantage is it’s a more all rounded product with all the things I mentioned above. I will buy for it. Few others will also buy. But is it really enough to survive in a market like India?

[cool_dube]

Originally Posted by Nikhildrao

This interview by autocar tells us a lot about the jeep attitude. I will re-iterate , jeep will cease to exist within the next 5 years.

Absolutely! It is not a matter of if anymore, but when. Another American bites the dust in India

[RJK]

Originally Posted by Nikhildrao

https://Youtu.be/qAZNPZMybvY

This interview by autocar tells us a lot about the jeep attitude. I will re-iterate , jeep will cease to exist within the next 5 years.

I had a good laugh while watching this interview - this guy is so full of marketing spiel
As someone mentioned, clearly & totally out of sync with reality

[shankar.balan]

I love the Jeep brand. Nuts about all Jeepy things and have been since early childhood. But much as my heart may desire a Wrangler Rubicon and all, I don't think I will buy one in India, even second-hand. Better go for a holiday and do a purpose-planned drive in a Jeep somewhere else in the world where their brand and service and overall attitude and support are strong. (Like Dubai or Australia or USA for example)

For my normal daily usage patterns and peace of mind in India, I think I ll keep playing with and admiring my multiple Jeep scale models and remain committed to my solid Mahindra Thar as a vehicle, the perfect cut price Wrangler - (WRONGLER!).

[Bhodrolok]

Originally Posted by Kosfactor

Hormazd was well prepared he could see through the 'Jeep' attitude and smilingly destroyed this corporate robot.

If this is Jeep India's leadership, it explains a lot about where the brand stands in India today. He was clearly un-prepared for this interview and did not have any substantial answers to give. If spiel is all Jeep India has, they will follow Ford & GM soon enough.

Compare this to the recent interviews from the MDs at Hyundai, Kia and even Suzuki, they have a clear focus and vision and implementing their strategy. Hyundai didn't need an Exter but they took the plunge anyway while Jeep has removed the petrol compass recently and all this guy has to say is a load of corporate nonsense.