Fiat Chrysler Invests $280 Million In Maharashtra Plant For Manufacturing Jeep Brand
Fiat Chrysler India has confirmed that they will be investing $280 million (around Rs. 1800 crores) to start production of the Jeep brand in India from 2017 onwards. The large investment will take place through an expanded joint venture with Tata Motors. The amount that has been planned for investing will be done to expand the Ranjangaon plant in Maharashtra, so that there is enough space to start production of Jeep.
Currently co-owned by Tata Motors, the Ranjangaon facility will see the investment of the Indian car manufacturer as well which has pledged to contribute an amount ranging in the region of Rs. 3000 crores, as the company is planning to manufacture its upcoming range of Q501/Q502 premium SUVs at the same site.
Other than establishing the new assembly line in the factory, Fiat Chrysler Automobiles India and Tata are in talks to take their partnership to new levels which will see the first supplying its 2.0-litre Multi-Jet diesel engine to the latter for the upcoming two Indian SUVs.
The Jeep brand has been confirmed to launch in the country towards the end of this year with the Grand Cherokee and Wrangler models. Though these models will initially be brought into the country via the CBU route, assembly for these vehicles will most likely commence from the second quarter of 2017.
Fiat’s investment into the plant comes in light for the company’s aims to double Jeep’s sales of 1 million (in 2014) by 2018. Fiat is holding high hopes from the Indian subcontinent which is poised to become the world’s third largest auto market by 2020, and the Italian giant cannot afford to keep the Jeep brand too distant from the ever flourishing SUV market in our country. As a matter of fact, a new C-Segment Jeep SUV will most likely be manufactured in India.