In what will rev up Indian roads furthermore, iconic US-carmaker Chrysler has finally drawn up plans to enter the the second-fastest growing automobile market in the world. In a market study recently commissioned by the company, Chrysler has identified India and China as the growth drivers for the 2011-2020. Since the company is already present in China it has now identified the Indian market as its top priority. The company plans to bring its classic Wrangler Jeep, through its subsidiary brand Chrysler Jeep.
The entry in the Indian market could be as early as the first half of 2012. Industry sources privy to the plans told FE that while Chrysler is not going to immediately launch its famed sedans like Challenger, Viper or Avenger, the company is keen on penetrating the niche off-road market in the country. ?The feeling in Chrysler is that since the SUV market (in India) is still largely less populated, it would offer the company a good starting point to study the market,? the source said.
The company is looking at positioning itself as a premium player in the space followed by possible collaboration with an Indian partner in future for increasing sales. ?Chrysler Jeep has the brand backing it. The jeep market in India which has so far been dormant is set to see a growth owing to an increased interest in outdoor adventures,? the source said.
Until now Chrysler has been the only global auto brand not to have entered the Indian market. In fact, soon after forging an alliance with the Italian car supremo Fiat in April 2009, following the company’s bankruptcy announcement, speculations have been rife about Chrysler’s possible entry into the country.
Interestingly in June 2009 when Fiat’s Group chief operating officer (international operations) Filverio Bonfiglioli visited India he left the question of Chrysler’s possible entry into India an open ended one. When asked if Fiat would bring in Chrysler brands, he merely said, ?Why not? without going into further details.
Home-grown automobile major Mahindra & Mahindra was also reportedly eyeing bringing Chrysler Jeep into India in 2008, but no progress was thereafter reported. ?In the recent past, Chrysler has been turning around its operations in the US. They have realised that expansion into emerging markets is the best way forward,? the source said. An email sent to media head Wendy Orthman at Chrysler Jeep went unanswered.
Earlier this year, M&M launched its much awaited jeep variant – Thar. Though the company ruled out the product generating any sizeable volumes for M&M, they argued that it would cater to the adventurous and off-road drivers. Interestingly, in the late 1940s, Mahindra developed the Willys Overland Jeep for the Indian market.
Leader automotive practice at PricewaterhouseCoopers Abdul Majeed said that since the luxury car market is growing at 25% plus in India, it offers big opportunity for Chrysler to enter India. ?While initially Chrysler may look at importing its jeeps but once a sizeable market is created it could then explore developing products through a completely knocked down approach,? he said.
