I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S
Auto Monitor
Vol. 12 No. 42
w w w. a m on l in e . in
10 December 2012
FOCUS
32 Pages
` 50
INTERVIEW
MACHINING Pg 18
“We want to supply to all major manufacturers.” Dr Ralf Cramer, Executive Board, Continental AG
Pg 10
Scan this code on your smart phone to visit www.amonline.in
Nine More For India From Fiat Our Bureau Mumbai
F
NEWS IN BRIEF 2013 Honda Civic Packed With Features At LA Auto Show
T
he new 2013 Honda Civic showcased at the LA Auto Show boasts of a refined exterior, interiors, enhanced dynamics and a whole new set of standard features. 2013 Honda Civic has been revamped and it can be seen with as changes made to its front and rear portions help to stand out amongst its competitors.
DATA MONITOR Top 5 CV Makers Company
Oct-11
Oct-12
Change
TML
35,263
38,193
8.31%
M&M
10,792
13,411
24.27%
ALL
5,892
7,466
26.71%
VECV Eicher
4,135
3,830
-7.38%
FML
2,008
1,667
-16.98%
Top 5 CV Exporters Company
Oct-11
Oct-12
TML
3,441
3,355
Change -2.50%
M&M
1,600
1,523
-4.81%
ALL
570
531
-6.84%
VECV Eicher
70
115
64.29%
FML
42
-
* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL
iat-Chrysler combine is looking to target ‘automobi le ent husiasts’ below 35 years of age in a proactive manner. With this it hopes to grab around five percent market share over the next four years. The Italian car major’s current market share in the passenger vehicle segment in India is around 0.7 percent. Company officials point out that new launches in B and C segment, revamped distribution and rejuvenated marketing efforts for the Fiat and the Jeep brand could be instrumental in helping the group grab a higher market share. “We are looking at regular launches and a refreshed model line-up comprising nine models under the Fiat and the Jeep brand over the next four years to achieve our objective. This would also include some platform sharing and derivatives keeping in mind the market realities and other dynamics,” said Mike Manley, Chief Operating OfficerAsia and President and Chief Executive Officer, Jeep Brand. The Fiat-Chrysler combine is evaluating to tap opportunities in the growing utility vehicle space where it does not have a presence. It is looking to launch a compact SUV and an SUV in the higher C segment under the Fiat and Jeep brand around 2014.
The Group is looking to tap its Ranjangaon facility (a manufacturing JV between Fiat and Tata Motors) for assembling Jeep brand in India. “We are looking to have separate Fiat and Jeep dealerships though we will evaluate combined dealerships from both brands at certain locations, if required,” said Manley. Fiat is likely to have around 112 dealerships by the end of this year while it is looking to have around 32 dealers covering around 25 key cities for the Jeep brand. Chrysler is looking to launch its first SUV by the third quarter of next year and this SUV would be assembled at the Fiat’s Ranjangaon facility. Fiat-Chrysler combine is also looking to launch Fiat Financial Services by April and will offer inventory financing to its dealers in addition to vehicle financing. Fiat is currently in the process of building up its distribution network in India and is bracing up to offer the new Grande Punto and the new Linea next year. This would be followed by one launch under the Fiat brand and one under the Jeep brand in 2014 and additional three launches in 2016. The group will offer refreshed models in 2015 and 2016 so as to retain customer interest in the brands. “We have to be very cautious in our positioning and value proposition for the Fiat and the Jeep brands in order to avoid any con-
Mike Manley, CEO, Jeep.
fusion in the minds of potential customers,” pointed out Manley. “We are optimistic about our prospect for growth in the Indian car market, which grew 12 percent in 2011 and is rapidly becoming one of the major markets in the world. With the launch of the Jeep brand, new Fiat products, an expanding dealer network and upcoming marketing initiatives, we will be in a strong position to capitalise on this growth,” said Enrico Atanasio, Managing Director of Fiat Group Automobiles India. Fiat Group Automobiles India Private Limited (FGAIPL) is a fully owned subsidiary of Fiat Group Automobiles SpA, Italy. It will distribute Fiat and Jeep vehicles in the country through an independent dealer network. The company is currently selling the Linea and Punto models,
which are manufactured by the Tata-Fiat joint venture. Fiat Group also operates in the components sector, through Magneti Marelli and Teksid, and in the production systems and robotics sector, through Comau. Some of the brands include the Fiat, Alfa Romeo, Lancia and Abarth brands, and LCVs under the Fiat Professional brand. In Europe, it also distributes Jeep brand vehicles. From January 2012, the activities of Fiat Powertrain – which researches, develops and produces engines (power output from 65 to 235 hp) and transmissions for passenger cars and light commercial vehicles (torque up to 400 Nm) – were transferred to Fiat Group Automobiles. Chrysler Group LLC, formed in 2009 to establish a global strategic alliance with Fiat SpA, produces Chrysler, Jeep, Dodge, Ram, Mopar, SRT and Fiat vehicles and products. The Jeep vehicle line-up outside North America includes Cherokee, Compass, Grand Cherokee, Patriot, Wrangler and Wrangler Unlimited. For 2011, Jeep brand’s worldwide sales increased by 41 percent versus 2010. Jeep was the Chrysler Group’s top-selling brand outside North America, rising by 46 percent versus the prior year and comprising 63 percent of Chrysler Group’s total international sales.
Better Diesel Power For Jeep Abhishek Parekh Mumbai
E
ven as Fiat-Chrysler combine braces up for a dual brand presence in the country, Fiat and Jeep brands may have different diesel engines powering its model lineups with Fiat’s compact offerings powered by 1.3 litre multijet diesel engine and Jeep offered with a 1.6 litre diesel engine. Both brands are likely to share a 1.4 litre gasoline engine for vehicles in the B and C segment. A company official pointed out that Fiat and Chrysler are looking to have distinct brand identities in the market and
Jeep will be powered by a higher capacity diesel engine from Fiat. Fiat’s S compact SUV is likely to be offered in the B or upper B segment while the SUV under the Jeep brand is likely to be in the more premium C segment. Company officials did not rule out platform sharing between the two brands at a later stage that could lead to Jeep offered with the 1.3 litre multijet engine. Both brand’s offerings in the B and C segment would likely have the same 1.4 litre petrol engine. Chrysler’s Grand Cherokee would be powered by a three litre diesel and a 3.2 litre gasoline engine and would be offered in the E segment competing with
Seeking distinct identities?
the likes of Range Rover in the Indian market. Fiat-Chrysler combine is also looking to launch ‘MOPAR’ its spare parts brand in India to have a better
control on the spares and service distribution network. It would also launch its performance brand ‘Abarth’ brand in India over the next couple of years.