Fiat Chrysler to bring Jeep brand here in 2015

Fiat Chrysler Automobiles will bring in its Wrangler and Grand Cherokee to India in 2015. In a presentation made to investors, Mike Manley, chief operating officer of Fiat Chrysler’s Asia Pacific region and head of the Jeep division said that the Abarth version of the Punto will also be launched next year.

In a presentation that provides a glimpse into launches for the five year period ended 2018, FCA has said an Abarth version of the Punto will be locally produced in 2015 as well.

In 2016, a C segment SUV, most probably the Renegade, will make its way into India from the Jeep portfolio as well as a sedan from the Fiat stable.

However, in 2017, as the presentation suggests, there will be an aggressive push of both brands in the Indian market with FCA bringing in two models apiece from Fiat and Jeep. While the Fiat launches include the all-new Punto and Linea, the Jeep-branded vehicles will include the next versions respectively of the Wrangler and Cherokee, the latter being made locally. 

While FCA will bring in the Wrangler as a CBU in 2015, the Cherokee will be locally assembled. The Cherokee and the Wrangler will be pitched at the top-end of the market to take on rivals from Mercedes Benz, BMW, Audi and Land Rover. Much depends on the value of the dollar on the one hand and policy pronouncements  on the other given that a new government will be in office.

It may be recalled that Fiat put on hold its plans for the Jeep, slated for late last year, as a result of the slowdown in the Indian market. However, Fiat India officials then said that the company is committed to bringing in the Jeep brand to India and indicated that the brand could be launched "as soon as market sentiments improve".

Jeep's careful approach to the Indian market is understandable. In the first quarter of 2013, the company began to restructure is distribution in India following its parting of ways with Tata Motors. The Indian passenger vehicle market saw a 6 percent decline sales numbers with even the UV/SUV segment declining by about four percent. However, Fiat’s two current brands saw sales of 11,880 units comprising 8,583 units of the Punto and Linea selling 3,297 units.

The UV/SUV segment has seen new vehicles such as the Renault Duster (in the Rs 12-15 lakhs bracket) do well segment. It is likely that FCA may pitch its C segment SUV slated for 2016 in this segment but it may not carry the premium image that the SUV commands abroad. Apart from the Duster, the other players include the XUV500 from Mahindra & Mahindra.

The presentation also provides a snapshot of what FCA’s India facilities will handle in 2018. While its  Ranjangaon facility currently handles one platform, three models, three  engines and one transmission, this will go up to three platforms, six models, six engines and three transmissions by 2018.

While the current facility has a capacity of 135,000 units, this will go up to 245,000 in 2018 with a 155 percent utilisation. Its engine production capacity currently 350,000 remains same till 2018 but that of transmission goes up from 300,000 units to 330,000 units.

On the dealership from, FCA hopes to have 220 dealers by 2018 as against 100 at present.

In 2014, FCA has already brought in the refreshed Linea and Punto cars and will bring the Avventura hatch and a locally-made Abarth edition of the Punto, the presentation suggests.

The Fiat brand itself hopes to sell 1.9 million cars globally by 2018, up from the 1.5 million sold last year. This includes a host of new models in LatAm  and Asia-Pacific, as well as a few key launches in North America.

That growth is not expected to come from Europe, however, despite the company planning new models for that continent.

So while Fiat estimates its sales will remain flat in Europe in 2018 at 700,000 units, the same as in 2013, due to increasing competition, its greatest growth potential is in Asia-Pacific, where sales should grow from 70,000 units to 300,000 units due to a series of locally-targeted models for India and China.

FCA was formed in January this year when Fiat acquired full ownership of Chrysler, four years after it took control of the American automaker as part of its government bailout and bankruptcy.

So what are the likely hurdles that Fiat India will face here? The postponement of the launch indicates that Fiat is keen bring in the product once the scenario improves on the Indian economic front. Also, the new schedule gives Fiat India the opportunity to spread its dealership a little more before it brings in the Jeep.

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FCA seeks greater play in China

Going by the presentation, it would appear so but there’s nothing new about this. China is the world’s fastest growing market and so all carmakers surely want to be there. In the presentation that Fiat Chrysler Automobiles made to investors, this was its China perspective. Under the Fiat-Chrysler brand umbrella, 19 products are planned between 2014 and 2018. This includes six for fiat (including refreshes) and eight for Jeep. On the plant expansion front, one more vehicle assembly plant to the two it has (one is for transmissions). This will be its second assembly plant which will roll out three models. Established in 2010, the 50:50 JV will also make Chinese brands and electric vehicles as per the policy requirements that the Chinese government has for foreign automakers seeing to expand operations in China. On the transmissions front, the current plant at Hangzhou that makes two transmissions will add another one.  Engine production is expected to increase from 140,000 units to 820,000, that is just under six times while transmissions will go up to 700,000 units, also about six times. More jobs will be created in China at 13,000, 4 times the current employee strength. The presentation suggests that China could see 39 percent CAGR between 2014 and 2018 thanks to local production and the introduction of the Alfa Romeo.