FCA plans $280 million investment in India for Jeep assembly

Fiat Chrysler Automobiles (FCA) plans to expand its manufacturing facility in Ranjangaon, near Pune in the state of Maharashtra. The company will start assembling and rolling out Jeep models from the plant in the second quarter of 2017. The company plans to invest $280 million (approximately Rs. 1,780 crore) for the expansion of the facility.

India is set to become the third largest automobile market by 2020. By 2018, FCA plans to double the 1 million Jeep sales that it had achieved in 2014 and for this, the carmaker cannot ignore the Indian market. SUVs account for about one fifth of the 2.6 million vehicles sold in India annually.

Locally manufacturing or assembling of the vehicles will help the company price them competitively as they will attract a lower rate of duty than those imported through the CBU route.

FCA plans to launch the Jeep Grand Cherokee and Wrangler in India in 2015.

Source: Economic Times