FCA to close down Fiat’s India operations
Fiat Chrysler Automobiles (FCA) which is the parent company behind the Fiat and Jeep brands in India has decided to close down India operations for Fiat, and will focus exclusively on Jeep in the future, claim our sources.
India will be moving to stricter Bharat VI emission norms in 2020, and Fiat, which has been supplier of the 1.3-litre Multijet diesel engine to several manufacturers, including Maruti Suzuki would need to make a large investment to make it BS-IV friendly engine meet the new regs . However, this move would have essentially been moot, considering that Tata and Maruti (the highest consumers of its engines) have moved on to their own home-grown engine platforms, contemplating the same.
Next, sales of the core Fiat-branded models, which are derivatives of the Linea and Grande Punto, have been low when compared to other manufacturers. The numbers have barely moved out of two-digit figures in the last 12 months.
Lastly, the penetration of Fiat’s after sales services has not been as strong as other manufacturers like Tata and Maruti and the overall brand perception has led to the inevitable situation for the manufacturer in India.
What does it mean?
The FCA showrooms will not go kaput completely and will only sell Jeep models. However, since FCA will be supplying the Compass engine to Tata, starting with Harrier, it means that Jeep’s facilities in Ranjangaon will continue without any problems. Of course, the Compass has been continuosly doing sales in the range of 2,000-3,500, since its launch, way back in July 2017. The Grand Cherokee and the Wrangler are also on sale, although the response to them both has been very dull. Add to that the fact that Jeep plans to soon introduce the top-end Compass Trailhawk, as well as the Renegade. However, the Renegade launch has also been put on backfoot.
