Fiat Chrysler to invest $250 mn in India2 min read . Updated: 06 Jan 2021, 07:55 AM IST
- Italian-American carmaker to assemble and manufacture four new sport-utility vehicles in India
FCA India Automobiles Pvt. Ltd will invest over $250 million to assemble and manufacture four new sport-utility vehicles (SUVs) in India, the local arm of Italian-American carmaker Fiat Chrysler Automobiles said on Tuesday.
“FCA today announced an expansion to the local product lineup in India, confirming that an investment of over $250 million has been committed towards the production of four new Jeep SUVs," the company said.
Also Read | The race to take fashion retail online
The SUVs, which will be launched in 2021-22, include Jeep Compass and a three-row Jeep SUV, which the company said is an all-new vehicle in its global portfolio.
Production for the updated Bharat Stage (BS)-VI variant of the Jeep Compass, which is scheduled to be launched later this week, has already started, the company said. The three-row, seven-seater, midsize Jeep SUV, which is codenamed H6, is planned for a commercial launch in 2022, FCA group added.
FCA also plans to locally assemble its iconic Jeep Wrangler and the next-generation Grand Cherokee. The two vehicles will be assembled at the FCA’s joint venture manufacturing facility at Ranjangaon near Pune.
The four new products will hit Indian roads by end-2022.
“The new investment ($250 million) is in addition to the $450 million we have already committed to our Indian operations over the past five years," said Partha Datta, managing director, FCA India, adding that it would give the company competitive advantage in the premium SUV segments.
Currently, Jeep Compass, which competes with Tata Harrier, Mahindra XUV500, Hyundai Tucson and MG Hector, among others, is the only locally-produced SUV sold by the company.
The Ranjangaon unit, one of its five global manufacturing facilities, has produced over 70,000 units since its launch in 2017, including the 50,000 units of Compass sold in India, besides another 20,000-plus units for exports.
It also imports and sells Jeep Wrangler as a completely built unit (CBU) but the company said it has already sold all of its CBU stock last year.
Last month, the FCA group announced it was setting up a global technology centre—Information and Communication Technology Center or FCA ICT—in Hyderabad at an investment of $150 million.
The new unit is one of FCA’s largest innovation and technology development centres, with the company aiming to tap India’s vast talent pool of software engineers and create up to 1,000 new jobs by end-2021.
“We are determined to increase locally-made componentry in our vehicles which are produced in our joint venture manufacturing facility. Our plans in India are aimed at increasing the value proposition for customers through our products and services, working hard on customer satisfaction and unlocking business opportunities for our business partners," Datta said.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!