Fiat Crysler Automobiles (FCA) entered India with the launch of its Grand Cherokee and Wrangler Unlimited SUVs which commanded a huge price tag. These two models offered the chance for FCA to create a premium brand image for the company; however, it did not convert into sales in huge numbers.
But that seems to have changed. FCA launched the Jeep Compass in India with prices starting from Rs 14.95 lakh ex-showroom (Delhi). The pricing of the SUV took many by surprise, not just customers but even its competitors.
This is evident with the bookings of 8,100 units for the Jeep Compass in India as reported by ET. Fiat India Automobiles, a joint venture between Tata Motors and FCA, owns a manufacturing plant at Ranjangaon on the outskirts of Pune and is increasing its production capacity to address the demand.
The plant will increase from one to two shifts for six days a week for the first time since the facility was setup a decade ago. FCA is just two or three months away from making more revenue in India than it invested in the facility.
The Ranjangaon plant currently manufactures the Jeep Compass and Tata Motors' Nexon compact SUV, which is expected to be launched in September 2017. FCA has received 8,171 orders for the Jeep Compass which is worth Rs 1,570 crore ($245 million). The company has invested $280 million in the facility and it just a matter of time before FCA reaches the break-even point.
As per reports, FCA is working towards 25 percent more output than it had planned. It is producing 90 units of the Jeep Compass a day and is looking to increase it to 110 per day to cater to the rising demand for the SUV.
For more information of the Jeep Compass, read our comprehensive review to understand more about the SUV.
The most crucial aspect of the success of the Jeep Compass is attributed to its pricing along with premium features. The Jeep Compass seems to have created a niche for itself in the Indian market and is well poised to lead the segment.