Jeep in India: Challenging Road Ahead

It's not always fashionable to be late. Two years ago, when Fiat delayed the launch of Jeep in India, it left many bewildered and disappointed.

By P S Balakrishnan

1 mins read

Published on October 20, 2015

Highlights

It's not always fashionable to be late. Two years ago, when Fiat delayed the launch of Jeep in India, it left many bewildered and disappointed. Back then, Fiat justified their delay with the claim that the market conditions in India were not conducive to the launch of the iconic SUV brand. Come February 2016, and Jeep will launched the Wrangler and Grand Cherokee SUVs at the Delhi Auto Expo. The market conditions are not going to be drastically different this time either. Instead, it is going to be a tad tough as Jeep will now have to deal with competition from the German big boys, Mercedes-Benz, Audi, and BMW, who have firmly planted their offerings in this segment and have hailed 2016 as the year of the SUVs. Adding to the line-up of the iconic SUV's competition in India is the new Volvo XC90. Relying purely on Jeep's brand value to justify premium pricing might not be the way to go as many of the other luxury players have learned the lesson the harder way. However, what is encouraging to hear from Fiat is that it seems to have a long-term plan in mind for Jeep post the initial launch of the Wrangler and Grand Cherokee. It is not a trial and error strategy. Jeep will retail through standalone stores across the country and might even be exported from India in the future. The plan for made-in-India Jeep SUV in 2017 from the Ranjangaon facility is clearly a signal of the commitment to the Indian market. However, what Fiat will need to learn and understand is the new segment of customers that Jeep will target. They are more demanding than your regular sedan buyers, hence a strong dealer network and an after sales support plan has to be chalked out. That's what Fiat Chrysler needs to focus on, and that message has to trickle down to instill confidence among consumers. Elaborating on Jeep's plan for India, Fiat Chrysler's India boss Kevin Flynn says, "We are flat out at the moment working on all the strategy around the Jeep launch. From marketing, communication, and how we are going to launch the network, the whole thing, its coming together really well actually. What is important to note is how we are going to use Ranjangaon as a part of global network of manufacturing plants. So we are going to be exporting as well manufacturing, and for us that says a lot about our commitment and vision for India and what we are achieving in India because if we can build a car here, we can also export same quality; same component; same fit and finish to our other markets." Also Read: Made-in-India Jeep Compact SUV to Launch in 2016 My excitement about the Jeep India launch is a bit guarded given Fiat's troubled history. With that said, there's always hope when the company indicates that lessons have been learned. So I am expecting Fiat to spring a positive surprise when Jeep finally arrives. A big bang launch at the 2016 Delhi Auto Expo might be a good start, but they have to be patient to win over the customer confidence. (Balakrishnan is currently Assistant Editor - Auto with NDTV.) Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.