Jeep is securing Fiat's presence, investment in India, says Kevin Flynn

Four years after he got here, Kevin Flynn, managing director of Fiat Chrysler Automobiles (FCA) India, says Jeep is the brand that establishes the company’s operations in India. In an interview with Pavan Lall, he shares the firm’s strategy, launch plans, and challenges in India. Edited excerpts:

How would you describe the India strategy you’ve been implementing over the past few years?

We started by bringing in the brand icons such as Jeep Grand Cherokee and the Wrangler, followed by establishing India as a right-hand export drive hub for SUVs such as our Jeep Compass launched last year. We also wanted to make sure people understand the depth of our engineering because a lot of cars look like SUVs but don’t drive like SUVs. For Jeep, we are all about SUV capability. 

The Compass, which started off strong, has seen slow sales of late. Your follow-up plans, and what’s in the pipeline?

Despite a drop in volumes, which we expect to bounce back, we are pleased with the first year of sales. We sold around 27,000 Compass vehicles at an average price of Rs 1.8 million. Plus, another 10,000 in exports. Up next, we will launch during pre-holiday season this year the ‘Black Pack’ Compass with black roof, black mirrors, black wheels, and all-black leather interiors, as well as a 'Limited Plus" Compass the customers have been asking for. Early next year, we will bring in the Trailhawk, which will be BS VI compliant and the first diesel automatic version of Compass. That will be followed by the sub-4 meter SUV, which will be around the size of the Ford Ecosport and Maruti Brezza, in 2020. Around the same time, we will also bring in a seven-seater above the Compass. 

Fiat has a long history in this country, with car clubs and older models. But, where does it go from here? 

We aren’t over with Fiat. But when brought in Jeep we did what we call “migrate” from a Fiat operation into a Jeep brand. We know where we are going with Jeep. Fiat is harder to chart because while people have fond memories of it, you have a market that is dominated by one player which impacts pricing, dynamics. So to bring in cars in that arena is hard to make a business case for. We did work with ideas to replace current offerings, but it’s not easy to come up with a sustainable model. Export is now the key to any foreign maker. What works is bringing a vehicle here that can also be sold elsewhere. 

What about other brands in the company... Dodge, Chrysler, Alfa Romeo? 

Dodge and Chrysler are all left-hand drive engineering as well as extremely North American brands. Alfa Romeo is very niche and entirely CBU. But I would never say never for Alfa Romeo. Right now, Jeep as a brand is the most relevant to underpinning, and is securing Fiat Chrysler Automobiles’ presence and investment in the country. Down the road, we may try other things. 

What do you say about this market? 

It can be a very fickle and discerning market but is also one of the most competitive and complex globally. I also struggle to see the relevance of sub-four meter duty structures if India is to become a leading exporter worldwide. What is the relevance of sub-four meter? The attraction may be lower duty and taxation but is it best for consumers in features and safety? That has to evolve in our view to become more relevant globally.