[Allpar News System]

Indian Autos Blog recently interviewed  Nagesh Basavanahalli, Managing Director of Chrysler India Automotive Private Limited (which includes the Chennai, India technical center, with around 1,000 employees). The facilities were set up in 2007, under Cerberus. Full interview and a rundown on Jeep and Fiat in India today. Mr. Basavanahalli said that the Chennai technical center had played a major role in both the 2011 and 2014 Grand Cherokee, in the development of various components, particularly in the interior and electrical system; and that they now had “around 60% of the workload for  computer simulation.” Regarding the upcoming “B-SUV,” Basavanahalli said that they did not have a name settled yet, but it would be “a brand new platform, and because the work is just beginning and a lot of the things are on the drawing board, I would not like to get into the details. ... The Jeep platform is very special to us. The Jeep..

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[CherokeeVision]

At least he talks like he gets it.

We will see.

 

[Mike V.]

At least he talks like he gets it.

We will see.

Yup, only time will tell.

 

[Erik Latranyi]

The way we do that cycle is we take a look, okay, these are the requirements from several parts of the world. It goes in. And then there is a core design that comes out. And then we also say okay, what are the things that we need to do to satisfy the Indian customer more or the European customer more, right?

He seems to get it, but I think he doesn't get to decide if the B-segment Jeep will be made more for European customers (less capable) or Indian customers (capable).

 

[JoshMHam]

The way we do that cycle is we take a look, okay, these are the requirements from several parts of the world. It goes in. And then there is a core design that comes out. And then we also say okay, what are the things that we need to do to satisfy the Indian customer more or the European customer more, right?

He seems to get it, but I think he doesn't get to decide if the B-segment Jeep will be made more for European customers (less capable) or Indian customers (capable).

To me it doesn't sound like it will be either more European or more Indian. It sounds more like a Venn Diagram to me. The Core Design is where the overlap is (what all regions need), then they can make slight variations (or packages) to meet each areas requirements.

 

[guyverfanboy]

To me it doesn't sound like it will be either more European or more Indian. It sounds more like a Venn Diagram to me. The Core Design is where the overlap is (what all regions need), then they can make slight variations (or packages) to meet each areas requirements.

It's hard not to agree with this.

 

[GasAxe]

The question is: can a vehicle be produced that would meet the on road expectations of Euro markets while having the adaptability and capability needed by off road markets that also meets an expected relative low price for both? That's a tall order.

 

[TripleT]

The question is: can a vehicle be produced that would meet the on road expectations of Euro markets while having the adaptability and capability needed by off road markets that also meets an expected relative low price for both? That's a tall order.

Could they do what they do to the Dart in China and have different suspension components for the different markets?

 

[tomtex]

The way we do that cycle is we take a look, okay, these are the requirements from several parts of the world. It goes in. And then there is a core design that comes out. And then we also say okay, what are the things that we need to do to satisfy the Indian customer more or the European customer more, right?

He seems to get it, but I think he doesn't get to decide if the B-segment Jeep will be made more for European customers (less capable) or Indian customers (capable).

I wonder what the average take home pay in Indian is,how much jeep can they afford?

 

[Erik Latranyi]

I wonder what the average take home pay in Indian is,how much jeep can they afford?

I am not picking on you, personally, tomtex, but people in general.

Why do so many believe everyone in China or India make pennies per hour? Do you think someone assembling Happy Meal Toys makes the same as an automotive or software engineer?

Just remember that people naively asked the same question, about affordability, with regard to China until they became the world's largest automotive market.

 

[TripleT]

I am not picking on you, personally, tomtex, but people in general.

Why do so many believe everyone in China or India make pennies per hour? Do you think someone assembling Happy Meal Toys makes the same as an automotive or software engineer?

Just remember that people naively asked the same question, about affordability, with regard to China until they became the world's largest automotive market.

I see more exotic cars when I am in China then anywhere I have gone in the US or the World.

The Wage inflation is also hard to keep up with.

 

[JRS200x]

India has an extremely large number of wealthy to very wealthy people. They don't have a giant middle class and there are lots of people that are poor by our standards, but you gotta remember just how many darn people are in India. This isn't the US with 300 million people. The amount of people that can afford a Jeep in India is plenty to justify making one for them.

EDIT: I should add though that the Indian middle class IS growing rapidly, very rapidly. India is actually a technology powerhouse as far as the number of good paying tech jobs that exist there.

 

[JTE]

Nagesh is no stranger to Jeep, he was mentored in Detroit at JTE and Auburn Hills by Bob Holdreith (RIP) one of the best suspension engineers I've ever known.
Just because a vehicle uses offshore design services doesn't mean they invent their own functional objectives, I'm sure they are in contact with AH on a regular basis.

 

[GasAxe]

I am not picking on you, personally, tomtex, but people in general.

Why do so many believe everyone in China or India make pennies per hour? Do you think someone assembling Happy Meal Toys makes the same as an automotive or software engineer?

Just remember that people naively asked the same question, about affordability, with regard to China until they became the world's largest automotive market.

Part of the arguement used to outsource jobs to India or China is that the wages are so much lower in those areas. The threat of 'take a pay cut or we're closing the factory and moving it to China' has been used more than once. It's understandable, but not necessarily accurate, why people think people over there only earn a few bucks a day.

 

[tomtex]

I am not picking on you, personally, tomtex, but people in general.

Why do so many believe everyone in China or India make pennies per hour? Do you think someone assembling Happy Meal Toys makes the same as an automotive or software engineer?

Just remember that people naively asked the same question, about affordability, with regard to China until they became the world's largest automotive market.

Well how much of a jeep wrangler B MODEL in Indian, can they buy.Maybe a CJ 2A type wangler?

 

[JRS200x]

Tom, you need to realize again, the Indian middle class alone is estimated to be around 300 MILLION people right now, which is the same as the entire population of the United States. This doesn't account for the wealthy at all, and it is growing quickly. There are A LOT of very poor people in India, that is true... but again, the number of people in India is staggering, its not like the US, so while 25% of the population may live off of $1 a day.. there are soo many people that it is a still a huge market, and an EMERGING market for a company. The number of people who can afford any sort of Jeep they want is enormous, bigger than that of the United States... we'll just have to see what their tastes are.

 

[bumonbox]

India has an extremely large number of wealthy to very wealthy people. They don't have a giant middle class and there are lots of people that are poor by our standards, but you gotta remember just how many darn people are in India. This isn't the US with 300 million people. The amount of people that can afford a Jeep in India is plenty to justify making one for them.

EDIT: I should add though that the Indian middle class IS growing rapidly, very rapidly. India is actually a technology powerhouse as far as the number of good paying tech jobs that exist there.

lol, talk about a lack of middle class. Although India's middle class has grown, and continues to grow. Both China and India are unusual animals. Both the most 2 populated countries with over 1 billion people, then the US in a distant 3rd. Both nations have no shortage of wealthy people - but there are indeed many very very impoverished areas of the nation. It's not to say they don't exist in the US of course, but not on a scale as large as those nations.

But yeah, one can't make assumptions about what can be sold in those nations unless they are very familiar with the economic make up of the countries. I have a very limited understanding, but thanks to family and friends who have traveled, and also lived there I have a very vague understanding.

 

[Dave Z]

The real problem will be competing against Mahindra, which makes Jeeps that look far more like the old CJ than the Wrangler does. These are not expensive vehicles, either.

As IAB said, "Which will people think is the copy?" and why would one pay premium prices for a vehicle that looks like a copy of a cheap SUV?

I think Wrangler will flop while Grand Cherokee does well. Just my thought...

Mercedes is doing very well in India, and is launching their most expensive products there. Rolls-Royce is there. I think Jeep and Fiat will have little impact with their low end models, but their high end should do well. -- not 10% or 20% well, but I think the initial Fiat-Jeep goal of 1% market share is achievable and the long-term goal of 5% is not unreasonable.

 

[JRS200x]

lol, talk about a lack of middle class. Although India's middle class has grown, and continues to grow. Both China and India are unusual animals. Both the most 2 populated countries with over 1 billion people, then the US in a distant 3rd. Both nations have no shortage of wealthy people - but there are indeed many very very impoverished areas of the nation. It's not to say they don't exist in the US of course, but not on a scale as large as those nations.

But yeah, one can't make assumptions about what can be sold in those nations unless they are very familiar with the economic make up of the countries. I have a very limited understanding, but thanks to family and friends who have traveled, and also lived there I have a very vague understanding.

Its only a lack of a middle class by percentage. The percentage that the middle class makes up is small, but that still is by most estimates around 300 million at this point and growing rapidly.

 

[Dave Z]

... India is also more “regional,” from what little I know, than the US (as is China), in distribution of wealth. While the US has wealthier and poorer areas, the extremes are not as extreme.

Anyway, Fiat has tried several times to relaunch. They had a huge market share through Premier -- which ironically started out with Chrysler Corporation back in the 30s or 40s -- but when India opened its markets, it fell apart. They might have a credibility gap to overcome along with all else, which is why they think that coming in with Jeep may help. Fiat's recasting itself as a premium automaker might help, too.

As for this stuff about "how can it be good for Indian roads AND American roads," I truly wonder. Would a Jeep not benefit from being designed to be durable on poor roads?