Jeep finalizes its electric vehicle strategy for India, seeks to increase localization

Electric vehicles are a focal point for SUV maker Jeep in India and it is evaluating different options before finalizing its plans for the domestic market, a top company executive said.

Jeep India, part of the Stellantis automobile group, also said the company is targeting over 90% localization of its Jeep Compass compact SUV in the next three years. The company has a manufacturing plant in 50/50 joint venture with Tata Motors at Ranjangaon in Pune district.

“(Vehicle) electrification options are something we are currently exploring because the customer is at the center and their (customer) needs must be met. Globally, we have a vast expansion of the electric vehicle portfolio .

So we are evaluating different options for India,” Aditya Jairaj, head of Jeep India operations and deputy managing director, Stellantis India, said on the sidelines of the rollout of the new nine-speed Jeep Compass AT Diesel in a 4×2 configuration on Saturday. .

The vehicle has been exclusively developed and launched in India.

Highlighting that electrification with Jeep in India is a focal point, which will eventually happen, he said that at this stage the company was still finalizing the EV strategy.

For next-generation products, the company is looking at 40% higher localization than the current level of 70%, which will be quite significant, adding that this is an important goal for the company.

“It’s not just about localizing India, but India for India and India for the world,” he said.

Furthermore, he said that exports will be one of the important elements of the company’s long-term strategy as it not only gives scale but also provides competitive cost advantage.

Jeep India currently has four products in its portfolio: Compass, Meridian, Wrangler and Grand Cherokee. Of these four, it exports the Jeep Compass and Jeep Meridian to markets like Japan and Australia, among others.

He said currently these vehicles are exported to developed markets like Japan, Australia and New Zealand.

“Exports therefore need to work in tandem with the domestic market to increasingly be a value proposition,” he said, adding that the company would continue to export the Compass and Meridian to other markets .

These vehicles will also be exported to non-right-hand drive markets, which opens up many opportunities for the company, he added.