Fiat Chrysler Automobiles today announced its plan to invest $280 million (approximately Rs 1,782 crore) in Fiat India Automobiles Private Limited, its manufacturing joint venture with Tata Motors Limited.
Last year, Autocar India exclusively reported Fiat Chrysler Automobiles’ plans for India involving the local manufacturing its Jeep model, codenamed C-SUV. The SUV, likely to be priced between Rs 13 - 20 lakh, will be an all-new offering that will sit above the Jeep Renegade (Codename: B-SUV) and below the Jeep Liberty. Fiat today confirmed that the manufacturing facility in Ranjangaon, located around 50 km from Pune, will indeed support the production of a new Jeep model.
The ‘C-SUV’ is expected to be priced between Rs 13-20 lakh. Power is expected to be between 105bhp and 120bhp from a 1.5-litre Fiat Multijet diesel engine (a downsized version the international 1.6-litre block) for the 2WD model. An all wheel drive version, powered by a larger 2.0-litre Multijet engine making 168bhp, will also be offered.
The smaller B-SUV, also known as the Renegade, is based on the same platform as the C-SUV and is likely to be produced in India. It will also feature the same 1.5-litre Multijet engine under the hood.
“Today marks an important step as we continue to expand the availability of Jeep products around the world. We are pleased that this investment will strengthen Fiat Chrysler Automobiles’ presence in India and are confident in the ability of the joint venture to produce world-class products like those carrying the legendary Jeep nameplate," said Sergio Marchionne, CEO, Fiat Chrysler Automobiles.
The announcement was made as a delegation, led by the State of Maharashtra’s Chief Minister Devendra Fadnavis, met with Mike Manley, President and CEO - Jeep Brand, Fiat Chrysler Automobiles Global and other company representatives in the North American headquarters of Fiat in Auburn Hills, Michigan.
Moreover, setting up a plant is likely to get easier for Fiat as Maharashtra government recently announced that it was working towards reducing the number of approvals required for setting up an auto manufacturing plant or any other industrial unit in the state to 25 from the current requirement of 76.
Ranjangaon will be the fourth plant outside of the US, Fiat said in a release. Jeep-branded vehicles are also currently built in Italy and Brazil, with production in China expected to begin in the fourth quarter of 2015.