Companies

Jeep India aims to double sales on ‘SUV momentum’

G Balachandar Chennai | Updated on October 22, 2021

Roland Bouchara, CEO and MD, Stellantis in India, and Nipun Mahajan, Head of Jeep India, at the launch of Jeep showroom on OMR, the IT corridor of Chennai   -  Bijoy Ghosh

Jeep India, part of the Stellantis Group, hopes to double its sales this year due to strong sales momentum for its SUV Jeep Compass supported by the ongoing shift in buyer preference from sedans to SUVs.

Encouraging sales

“September sales were very encouraging and October has been even stronger due to festival season buying. We have already seen a 40 per cent rise in volumes in this festival season when compared with the 2019 festival season. So, our expectation is to better our overall volumes of the festive season of 2019,” Nipun Mahajan – Head of Jeep India, told BusinessLine after launching its new Jeep sales and service operation VTK Automobiles, which is the second Jeep showroom in Chennai.

In September 2021, sales of Jeep Compass more than doubled at 1,311 units compared with 554 units in September 2020 and it commands a market share of more than 55 per cent in the SUV category that is priced in the range of ₹20-30 lakh.

Attracting buyers

“It is pretty encouraging to see customer response to the new Compass and we are growing stronger. Our brand positioning and price packaging have helped attract more buyers. Also, we are attracting all types of buyers —corporate executives, doctors and the self-employed, first time and upgrades,” said Mahajan.

Premium segment

He said Jeep will remain a premium brand in its segment.

“The response to our new products such as Jeep Wrangler has clearly indicated that our positioning has been perfect. We will continue to focus on premium play,” he added.

In line with its premium positioning, Jeep is boosting its digital presence and physical outlets to improve customer experience. “We are looking at enhancing our website where customers could do customisation, ownership options and financing etc,” he said.

Expansion plan

The company’s $250-million expansion plan for launch and production of four SUVs, including a seven-seat mid-size SUV, in 2022 is on track. “We will start 2022 with a big bang launch,” he said.

India is also aligning with the global trend of an SUV-driven market. In the last couple of years, there has been a gradual increase in sales of SUVs. In the post-lockdown phase twice, revival of demand was stronger on the SUV side. “It suits us very well as Jeep is a SUV brand,” he said.

Jeep has 65 sales and service outlets across India and will continue to increase its distribution network.

Published on October 22, 2021

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