At the press briefing, Bouchara said, “India is a major part of our global strategy, and we intend to achieve a high level of localization for our products, to make them more accessible to our customers while maintaining an uncompromising vision on our core Jeep DNA.”
Distant Brazil, a market 14,250 km away from India, is the ‘benchmark’ for the local unit of Stellantis, the maker of the iconic Jeep.On the anvil for Jeep in India this year are the Jeep Meridian and the Grand Cherokee to be rolled out in the second half of this year. Stellantis, formed early 2021 through the merger of Fiat Chrysler and Peugeot, expects Jeep’s presence in India to be strengthened by the Meridian.Fuelling this hope is what played out in the ‘D’ segment in the premium SUV market in Brazil. Meridian, called in Latin America by a different name (Commander), became the leader in the segment within a short span of two months. Jeep sold 10% of the annual segment volume in just one day. And in two months, it sold more than what its previous segment leader sold in one year.The leadership in the D segment of the premier SUV space in India is currently occupied by Toyota Fortuner. “It (Brazil) is not dissimilar to the market here. The vehicle has more than six months waiting list in Brazil,” said Christian Meunier, Global CEO Jeep – Stellantis.The comparison of the two markets, for now, looks ambitious. In Brazil, Jeep sells 15,000 units a month with three models, and in India, it only sells a tenth of that on average with two models. “We’ll be bringing the Meridian, which will be a high-volume car,” Meunier explained. “We need to grow in India, and we need to have all the focus in India. We are not here to lose; we are here to win,” he added.Towards building its share in India, Jeep invested 250 million dollars in 2021. Jeep’s investments were made to ensure high local content in its vehicles. From the first day, the three-row, seven-seater Meridian will source 80% of the parts locally.“It will generate incredible momentum for the Jeep brand in India. We already have Compass and Wrangler. Cherokee and Meridian will only strengthen the Jeep brand’s premier position. Fits a void,” Meunier said.India, mirroring other global markets is seeing a surge in the SUV segment. While carmakers such as Hyundai, Tatas and Maruti have gained considerable market share with SUV product offerings, the share of the traditional hatchbacks and sedans has receded in the Indian market. SUVs accounted for 38% of the cars sold in India in 2021, almost at par with hatchbacks. Just five years ago, hatchbacks accounted for half the market and SUVs for just a fifth.Jeep has no offering yet in the smaller segments. But Jeep is unfazed by its lack of presence in the mass SUV segment and the gains made by competition. It has no plans to play in that segment, according to Roland Bouchara, MD, Stellantis India. “We are not going into a format with a quasi-hatchback that looks like an SUV. We are not chasing market share for the sake of it. We’re doing it our way,” Bouchara said.“We are building momentum and visibility in the Indian market. It will take a little bit of time, but Brazil shows it can be done. The market environment is not dissimilar,” Meunier added.The philosophy behind this move is that Jeep believes that by staying authentic and premium in the segments, it can position itself better.The 80-year Jeep brand has over 1000 Jeep clubs and 1.5 million members. In India, Compass and Wrangler have managed to get 60,000 customers in five years, which is about 1000 units sold on an average month. The company expects this community to upgrade to Meridian and the Grand Cherokee even as it snares new customers from its rivals in India. In 2009, Jeep addressed 60% of the global market with just a few products. Now it has products covering close to 100%. Jeep Meridian is the latest example of its comprehensive coverage. In the last 12 years, Jeep has expanded production from four plants in the US to 12 plants in six countries now. India will produce four Jeep models, more nameplates than any other market outside North America. India will become an export production hub for Japan, Australia and other right-hand drive markets.With Jeep not chasing numbers, can profitability accrue from making fewer numbers in the premium segment?“We are on a good track to become profitable,” Bouchara revealed. “We are building momentum and visibility in the Indian market. It will take a little bit of time, but Brazil shows it can be done. The market environment is not dissimilar,” he added. Bouchara has the twin responsibility of Citroen and Jeep in India, says a lot of synergies in logistics, data centres have been derived for the two brands at the back-end.At the press briefing, Bouchara said, “India is a major part of our global strategy, and we intend to achieve a high level of localization for our products, to make them more accessible to our customers while maintaining an uncompromising vision on our core Jeep DNA.”
Thus the product offensive for 2022 and beyond will continue to illustrate our commitment to India as we work towards strengthening our market presence and offer unmatched experiences to our customers.”
Keyword: Jeep bets on Meridian to strengthen presence in India's premier SUV market