Fiat Chrysler will be making investments to the tune of Rs 2,500 crores over the next few years in India. This will see the setup of new production line at their plant in Ranjangaon, near Pune. It is here that the company plans to produce new Jeep SUV. Expected to be launched by 2017, this new Jeep SUV will be priced in the range of Rs 20-25 lakhs, and will compete with the likes of Toyota Fortuner and Honda CR-V.
Rush Lane has learnt that this new SUV will be offered in both diesel and petrol engine options. Engine capacity is to be 4 cylinder 2.0l as standard for both petrol and diesel engines. Diesel engine will be manufactured in India, work for which is set to commence next month, while petrol engine will be imported from Europe. In India, only diesel variant will be on offer, whereas petrol engine will be fitted only on export variants.
Fiat Chrysler plans to export this new Jeep SUV to all major right hand drive markets like Australia, UK, South Africa, Japan, etc, thereby making India a production hub. Fiat also plans to keep the costs down, and aims to achieve 100% localization for the variant which will be sold in India. That is why the diesel engine will be locally made, as that is the engine which will be on offer in India. This new Jeep SUV is expected to enter production in late 2016, while market launch will take place in 2017. Production target is set at 60,000 units annually. Over the next few days, Fiat India is expected to reveal further details officially.
As far as Jeep Renegade compact SUV is concerned, the plan to produce it in India has been scrapped. Jeep Renegade was to be built in India with 95% localization. Once launched, it would have been priced in the range of Nissan Terrano, Renault Duster, Tata Safari, and Mahindra XUV500. Person close to the development reveals that the plan was scrapped as Fiat Chrysler wanted Fiat India to sell at least 30,000 units annually in domestic market.