After launching the Jeep Grand Cherokee and the Jeep Wrangler at steep prices of Rs. 71.59 lakhs going up to Rs. 1.14 crore (ex-showroom, New Delhi), Fiat Chrysler Automobiles India confirms that Jeep has been developing SUVs priced in the Rs. 10 lakh to Rs. 20 lakh range.
Unlike the Jeep Grand Cherokee and the Jeep Wrangler, which are being brought to India as CBUs, hence commanding a heavily steep price, the new SUVs will be almost fully localized to keep the price as low as Rs. 10-20 lakhs. So, the Jeep is clearly aiming at a big market share in India through high volume sales.
The SUV in development, in the C-segment, has been codenamed 556, can be expected to launch by August 2017. The new SUV is expected to pip the BMW X1, in terms of equipment, features and specifications. With All-Wheel Drive (AWD) as an option, besides launching in India, it will also be exported to a lot of other international markets.
The move to introduce heavy-priced luxury models before launching the locally-built models is to create the luxury car brand image to help drive high-volume sales. Jeep India could not have done the opposite, as it would make it hard for the American-born manufacturer to attain a luxury car brand image.
Besides the 556, Jeep is also developing a B-segment sub-4meter, compact SUV, codenamed 526, whose price is expected to begin from Rs. 10 lakh. This price point will pit the Maruti Vitara Brezza and the Ford EcoSport as rivals to the compact SUV from Jeep.
However, the Jeep compact SUV will be priced at a slight premium compared to these already existing models. It will even boast of additional equipment to keep the Jeep’s upmarket image alive as a premium brand.
After the launch of the Jeep brand in India, FCA also expects to export Jeep models from India, manufacturing them from its Ranjangaon facility, where it has invested a huge $280 million. It also expects to achieve a huge localization that will come as a surprise to both its rivals and buyers.
There already are plans to open 10 new dealerships covering nine cities before 2016 draws to an end. While the Ahmedabad dealership has begun its operations, the Mumbai dealership is expected to showcase both Fiat and Jeep products under one roof.
