2017 Jeep Compass: Why is the compact SUV a litmus test for FCA?

Jeep, the American brand, is widely considered as the epitome of off-road vehicles. It is one of the preferred choices for many adventure junkies around the world. The signature seven-slot grille equipped SUVs of Jeep are easy for pockets and that helped them expand territories across the world.

Also read: GST impact: 2017 Jeep Compass price may start below Rs. 15 lakh

The arrival of Jeep in India was late. The brand was supposed to enter India in 2013, but got delayed till 2016 for unknown reasons. Finally, it started operations with Wrangler and Unlimited for a steep price range of Rs 71.5 lakh to Rs 1.12 crore.

However, with the announcement of Compass to India as its most affordable model, encouraging responses have been registered on auto forums. People have started to talk about Jeep SUV like never before.

In many ways, the upcoming Compass SUV is the most important model for Jeep India. To make it more precise, the Compass is expected to be a game changer for Jeep India's parent company, Fiat Chrysler Automobiles (FCA) India as well. Here is why we think so.

Reboot from a lacklustre start

As mentioned before, Jeep India was supposed to start operations in 2013. The company had also given cars for media drives back then but later postponed its plan. When they launched finally in August 2016, they were criticised for overpricing the models. At a starting price of Rs 71.5 lakh, Jeep models are clearly overpriced and that led the excitement to fizzle out soon.

Hence, it's crucial for the company to mark its presence with Compass. At an estimated price of Rs 15 lakh to Rs 23 lakh, Compass has the potential to be a stunner just like what Kwid has done for Renault India. If the pricing is right, Jeep India will get much-needed reboot after a lukewarm start.

First made-in-India model

Both Jeep Wrangler and Unlimited has become expensive purchase in India because of its completely built unit (CBU) line of Import. It looks like the tepid response has opened the eyes of Jeep India. We don't know whether the local manufacturing of Compass was part of the initial plan of Jeep for India. In any case, local manufacturing will cut down the price of the compact SUV. It also goes in line with the Make-in-India initiative of Narendra Modi government. This will shed the image of Jeep being a 100 percent foreign company and add an Indian flavour, which will make the SUV more appealing here.

Huge investment and preparations

Ahead of Jeep's arrival, Fiat India underwent corporate re-structure in 2014 and renamed it as Fiat Chrysler Automobiles (FCA) India. FCA has invested around $300 million for manufacturing Compass SUV in India. The Ranjangaon plant will produce right-hand-drive Compass units not only for India but also for other RHD markets such as Japan, South Africa, Australia and the UK. Such large-scale investments indicate FCA is pretty serious on turning the Compass a grand success. Will the preparations pay off?

Successes of Compass will dictate future of FCA and new Jeep models

FCA has two brands under its umbrella—Fiat and Jeep. Fiat has a fairy tale story to tell in India. Entered the country in 1997, the Italian carmaker's sales never saw a drastic jump. Market share of the company is as low as 0.0018 percent at present. Hence, Compass has to be a volume driver for FCA to survive in India in good shape.

There are reports that FCA may concentrate on Jeep and kill Fiat in India if the Compass becomes a successful model. The strategic shift is solely based on Compass' response. FCA has also planned to launch sub-10 lakh compact SUV, the Renegade in India. The road will be clear for this model if Compass makes a significant jump in sales.

It is clear that in many ways Compass is the most crucial vehicle for not only Jeep India but also for FCA India. Bookings are currently open for Compass and launch is expected in August.