With Jeep under its sleeve, Fiat is embarking on a new beginning in India where it has so far met with limited success despite its long history.
The Jeep Compass, the first made-in-India product under the Jeep brand, is to be introduced shortly.
“The Jeep Compass is the first chapter in the new book. Jeep is a new beginning in India and we have great aspirations,” Kevin Flynn, president and MD, FCA India said in an interview on the sidelines of an off-road event.
Though Fiat cars were first introduced in India in 1964 through a licensing agreement with Premier Automobiles, the company failed to find traction since the late ’90s as it lacked a cohesive strategy for the Indian market though it had strong brand recall.
Though its products were of high quality, buyers stayed away due to deficiency in after-sales service and lack of adequate model line-up, said analysts.
“The company was confused on its India strategy and there was no 100% commitment,” an auto analyst said asking not to be named. “Now, the company is looking to the future with optimism,” the analyst added.
‘Right strategy needed’
“The key thing is they have to get the strategy right as India is a difficult market. The introduction of Jeep Compass is a step in the right direction; it has created its USP in the market,” said Abdul Majeed, partner, automotive leader, PwC.
Commenting on the past, Mr. Flynn said, “We should have had a more aggressive model plan. The competence of our products is renowned. The issue always was ‘where were the new products?’ and every time, you heard people telling stories of four years prior.”
“The perception in people’s minds may be due to historical frustrations and these things do not go away easily. Today, the Jeep will change that perception,” he added. “We have now entered a new era with a fresh approach” he said.
Though there has been speculation on the future of Fiat products in India, the firm is continuing with them. “We have a number of projects under evaluation; we will go for only viable projects. We are diligently following our course on the Fiat brand,” he added.
