‘Aiming for 85% localisation’
Automaker Jeep India, part of the portfolio offered by global automaker and mobility provider Stellantis, is aggressively targeting the Indian market. Vijay C Roy talks to Aditya Jairaj, MD and CEO of Stellantis India.
Which are the models that Jeep India manufactures locally?
India is the only country outside North America where Jeep makes four models locally — Jeep Compass, Meridian, Grand Cherokee and Wrangler — and also exports to right-hand-drive markets globally.
Compass for Indian market
Compass is Jeep’s most-sought-after model in India. We have launched Compass 4×2 specifically for the Indian market. Aditya Jairaj
What is the current status of localisation?
For Compass and Meridian, localisation is about 65-70 per cent and our ambition is to take those numbers to 85 per cent plus. That is very critical for driving value and success. For other models, the extent of localisation is lower, but for the mass market models, it is 65-70 per cent.
Which is the most-sought-after model in India?
That’s Compass. Every Jeep nameplate is available with 4×4 but, recently, we launched Compass 4×2 specifically for the Indian market. Our 4×2 Compass automatic too has been designed and engineered specifically for India. With the introduction of 4×2, we are expanding the addressable market for Jeep. But what is most important is the capability.
How have been the sales in the last couple of years?
On an average, we are selling 500-800 vehicles per month. Compared to the first half of this year, our ambition over the next few months is to double our sales, banking on new launches such as Compass 4×2.
What percentage of total sales comes from diesel vehicles?
Compass and Meridian have diesel engines. It commands around 90 per cent of our sales. Grand Cherokee and Wrangler have a 2-litre turbo petrol engine. As far as introduction of petrol versions in other models is concerned, we continue to look at the market requirements.
What is your market share in the price band you are operating?
We have a 30 per cent market share.
How has the North Indian market responded to Jeep sales?
Chandigarh has always been an SUV hub and thereby, one of the most important markets for Jeep in India. The affinity to authentic products continues to drive strong growth in the region.
Could you elaborate on the expansion plans?
Our focus for 2024 is to make sure that we should be there where the customer wants us to be. That doesn’t mean adding multiple points of sale. When the customer buys the vehicle, we need to expand the service coverage. So, expanded service coverage is a focus area. This has to be done in an innovative and cost-effective manner to satisfy the customers. The second focus area when you talk about point of sales is that right now, we are at 76 dealerships across India. So, our idea is to not take this number higher but to make sure that we are at the right places.
How do you see the market in the off-roading segment?
Customers are looking for more experiences because disposable income has gone up. So, in the next few years, we see the customer becoming more attuned to wanting these experiences.
When it comes to the acquisition of new vehicles, is the average age in India lower than in other markets?
It depends, because in some other markets, if you don’t have a vehicle, you can’t go to work. So, at the age of 17-18, when people start working part-time, they have to buy a vehicle. In India, the age profile if you see the customer demographics for Grand Cherokee, it is a little bit different, and for Wrangler, it is very different.
Compass could be the first car in the house or the second. Usually, Wrangler is not the first or second car in the house. So, obviously, based on demographic changes, the need also changes.
How is Citroen doing in India?
It is a very young brand in India but if you trace the history of Citroen, it goes back to more than 100 years. What we need to do right now is to build on the foundation we have and showcase the heritage. We just started around two years back in India and it takes time to establish. That is our task at hand right now.
There were reports that you are planning to reintroduce Fiat in India.
At this point, we have to make the best with what we have. For Stellantis as a company, we have got Jeep, we have got Citroen. So let’s try to maximise with what we have.
