Fiat to enter Indian market with Jeep in Q3

Fiat SpA and its U.S. unit Chrysler will launch Jeep vehicles in India in the third quarter of 2013, in an effort to enter India’s fast-growing SUV segment. Fiat‘s share in the market in the six months to September was a low 0.4%. The company recently ended its local sales partnership with Tata Motors after sales performed below expectations. With the goal of reaching a 5% market share in the near future, Mike Manley, Chrysler President and Chief Executive Officer for the Jeep brand said that the company will bring out new products like off-road pick-ups and luxury SUVs, the first vehicles from the Chrysler stable to launch in India.
Enrico Atanasio, managing director of Fiat Group Automobiles India, said that Fiat plans to sell Jeep through 32 dealers in 25 cities across India. SUVs have been in high demand in India over the past year, aided by the government’s subsidies on diesel fuel. According to industry body the Society of Indian Automobile Manufacturers (SIAM), sales of SUVs in the first half of the current financial year that began in April rose by 55.8% year-on-year, while car sales went down to 0.3 %, but is expected to grow by 1% in the financial year ending in March. SIAM said that high interest rates, sluggish economic growth and rising fuel prices continue to deter buyers. (December 6, 2012)