At a time when passenger car companies in general have increased car prices owing to an increase in input costs, FCA India, the subsidiary of Fiat Chrysler Automobiles, has announced more than 7 per cent reduction in the prices of its Fiat Linea and Punto EVO models in India.
While prices of the Linea range have been reduced by 7.3 per cent, Punto EVO prices have been cut by 7 per cent. The new prices will be applicable with immediate effect, a top company official said.
“We have decided to realign the prices downwards. Our cars are rich in specification, quality and are technologically superior. This price reduction is testimony to our customer-centricity,” Kevin Flynn, president and managing director, FCA India, said in a phone interview from South Africa.
The prices of Urban Cross, Avventura and Abarth Punto were reduced last year.
Market share
“The main objective is to gain market share,” Abdul Majeed, Partner and Automotive Leader at Price Waterhouse said. “Once more cars are seen, it will lead to word-of-mouth publicity. Their products are good and in a price-sensitive market, this strategy may work. But they must focus on distribution and after-sales.”
The firm, which has less than 1 per cent market share now, wants to start afresh. Introducing new products under the Jeep brand and ramping up distribution and after-sales network is part of this strategy, he said. “2017 is going to be the turning point for us. It will be a significant year for us as we enter a new phase of growth with both our brands – Fiat and Jeep,” he said. We want to make this the year of our transformation in our approach towards engaging with existing customers and willing new ones,” Mr. Flynn said.
The company is also gearing up to introduce Jeep Compass SUV which will be locally produced in India from the third quarter of this year. “We are very excited about the roll out of Jeep Compass. We will also be exporting the Made in India Jeep from here,” Mr. Flynn said.
The company has invested $280 million at the Ranjangaon plant where a new assembly line has been set up for Jeep . Last year the company introduced Jeep Wrangler and Grand Cherokee which are imported and sold here.
With Jeep Compass the company targets to have a foothold in the Indian market. Jeep Compass will compete with Hyundai Tuscan, Ford Endeavour and Toyota Fortuner.
Meanwhile, the company is overhauling its sales and service network. It has also introduced a new format of dealer showroom branded as FCA Destination Stores where Fiat, Abarth and Jeep brabds are available under the one roof.
