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Fiat to make Jeep in india around 15 lakhs

Discussion in 'Fiat India News' started by vinit, Aug 5, 2015.

  1. nikhil0405

    nikhil0405 Amatore

    Linea 1.3
    Yeti might be a failed product but that does not changes the segment it belongs to.

    On the topic of 5 seater SUV's not selling, the same was said when i20 was launched in India that a hatch at that price will not sell. The thing is that the urban buyer is maturing and a bigger car always does not amount to luxury. Parking spaces, driving etc in the city contribute to this. The Creta sells at its price because of the SUV/luxury feel it gives and the myth of low cost Hyundai maintenance.

    The new Endeavour is at a higher price point and the new Fortuner is expected to be higher.

    Anyways, the c-suv like I said will be comparable to the Tuscon and Yeti and should be priced accordingly. Whether it succeeds or not depends on what VFM factors that FCA can offer.

    The chances of FCA pricing it lower seem slim after the latest jeep price announcements. They will have my money on the launch day itself if they launch it at 15L. That is wishful thinking though.
    cassini and prabhjot like this.
  2. Ichimaru

    Ichimaru Regolare

    Gurgaon, India
    I understand and partially agree to what you are saying. But

    1. i20 belongs to the <10 Lac segment; hence caters to the mass market.
    2. I believe Yeti had a good feature list and premium interiors and decent suv capabilities. Skoda at that time had a good image as well. Yet, it did not sell.
    3.Of course there will be people who would spend for more luxury coupled with (relatively) smaller size but that number would be less than people spending for decent luxury @ right price and segment.

    I have also read that Jeep's sub 4m suv would be priced higher than Ecosport with more features. Now, Ecosport already has a great feature list that satisfies the segment buyers. Even if Jeep launches a sub 4m suv with even more features than Ecosport with similar space and boot size but price it @2L premium over the ecosport, I don't think it will sell a lot.

    Eventually it boils down to whether they want ~1000-2000 units to be sold in a month or reach ~4000-6000 with these particular models.

    Just my 2 cents.
    nikhil0405, prabhjot and Raj_pol like this.
  3. nikhil0405

    nikhil0405 Amatore

    Linea 1.3
    The example of the i20 was to indicate that people's buying power and preferences are changing. Until a few years back, the i20 segment was not mass market but it is now like you mentioned. The monthly Creta sales point to the same.

    Not trying to defend the Yeti but I feel the market was not mature enough for it when it was launched. And in the Indian auto industry it is mostly once a dud always a dud.

    I think if FCA manages even 2000/month at that price point, it will be a feat for them. It all depends on what value they are able to offer over competition in that segment.
    prabhjot likes this.
  4. Raj_pol

    Raj_pol Superiore

    Punto Evo 1.3
    @nikhil0405 Very important statement that you made "Once a dud, always a dud". It is better to sell it at minimum profit or even at no profit to get the initial traction. Once a certain good will has been attained they can do price increases.
    nikhil0405 likes this.
  5. avi_loveindia

    avi_loveindia Amatore

    Grande Punto 1.2
    What Autocar says :
    "This new Jeep is likely to get features and equipment similar to its much larger and more expensive sibling. Stuff like the U-Connect infotainment system with its large 8-inch screen could be taken straight off the Grand Cherokee and one can expect features like climate control and push-button start. And there could even be a seven seat option.
    The Jeep Compass for India will be powered by a 172.3hp 2.0-litre Fiat Multijet II diesel engine that will be localised. The engine will also be seen in Tata's Q501 SUV in the future. The new Jeep Compass, unlike the others Jeep imports launched recently, will be competitively priced as it will be locally assembled at Fiat’s Ranjangaon facility near Pune.
    The Jeep brand officially entered India last month with two models, the Wrangler and the Grand Cherokee along with the high-performance SRT variant. While these two mainstream models are fully-built units and command steep price tags, the Jeep Compass is likely to be priced competitively as it will be locally assembled in India at Fiat’s Ranjangaon facility near Pune. Prices are expected to start at around 17 lakhs for a reasonably well equipped version,"
  6. prabhjot

    prabhjot Esperto

    delhi ncr
    The JEEP c-suv is a 'tweener', in India that is: globally not so.

    Globally (including China) it is sized, engined, feature-list-ed etc on a very standard-segment basis, a c-cuv/suv. What would be special, and a usp, would be the JEEP-ness: way more technology (eg, 9-speed transmission, the Fiat 2 litre mjd, the high-end 4x4 systems etc) + the JEEP (sporty/adventure/traveller/outdoorsman etc) image + a high order of toughness in build and component quality (esp suspension.)

    i.e., neither the japano-korean pseudo-cuv-s like say a Creta or Tucson, NOR the pickup-truck-based overweight, lack of refinement and technology-standards (eg., in engines or powertrains) body-on-frame suv-s. NOR just a vague German-style so-called 'luxury'/'quality' etc.

    BUT: strong elements of ALL three product-spec traits-families. i.e., just like a Land Rover of the affordable (globally) segments. A play on standard segment traits, but with a patina (or more) of distinctive JEEP-ness (macho/aristocratic+consumerist+democratic in flavouring, all 3 traits together: Americana, in other words.)

    The YETI was a european middle-class family-b-cuv: not as big as the new Compass, and had a pleasant but (typical of the vw group) ultra-banal style. No charismatic presence, too expensive an engine, not localized at all. A Renegade or 500X type of vehicle rather than like the new Compass or Honda cr-v or HY Tucson. With no brand-image usp, either. Essentially it was mispriced: it should've been positioned where the later Creta was, above but not-by-too-much the utilitarian Duster. But, vw group's localization-levels were are and are too-low for proper costing, and besides Hyundai has the advantage of free-trade imports from Korea for engines etc.

    THAT is what is so very impressive about FCA's jeep investments: the localization of the powertrain etc, added to the global stature of the JEEP-specialist, old fca/chrysler-corp technical centre in India. That would make it, hopefully, very price and/or margins-competitive, perhaps uniquely so in India in these segments. It would also be the by-a-huge-distance the most VALUE-ADDED automotive or even (?) industrial export from India.

    As long as they appreciate that 'jeep' in India is and will remain a common-noun for 'any' suv-form vehicle, alongwith henceforth a proper-noun for a unique and advanced brand, they'll be fine with price positioning i am betting. i.e., charge a hefty premium for higher-end 4x4low+aesthetics-of-Trailhawk-version+accessories, BUT keep the premium to say Hyundai (Tucson) at a minimum for the 4x2 versions. Equip the latter well, maybe offer less-powerful engine variants: that way JEEP can do BOTH things, be 'common' as well as 'special'. After all JEEP is an old American brand, distinctive and high usp but equally: folksy, everyman, unpretentious, 'democratic.'

    I think they 'get' this about JEEP in India: it cannot like elsewhere be positioned as a quasi-'luxury'-or high-premium brand here, since jeeps have been here and have been all-too familiar in a sense ever since ww2. That's why the quite-high localization strategy they're deploying (thanks to the possibility of rhd-exporting from India), and that's why they'll be following up the 19 to 25 lakhs 2017 c-suv with a Renegade-like but -somewhat-desi-priced-b-suv (in 2018), in the 10-14 lakhs range i guess.
    nikhil0405 likes this.

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