Fiat Chrysler Automobiles NV (FCA) said on Tuesday it will invest $250 million to grow its presence in India with the launch of four new sport-utility vehicles (SUVs) under its Jeep brand over the next two years.
The investment will be made to locally manufacture a mid-size, three-row SUV, assemble the Jeep Wrangler and Jeep Cherokee vehicles in the country.
Indian automakers' plans to pass on higher commodity prices to customers will dim the prospects for a demand recovery after December when the boost in some categories from pent-up demand and festive spending fades and the economic impact from the coronavirus pandemic reasserts itself, Fitch Ratings said on Thursday.
Automobile registrations across the country dipped by nearly 19 per cent in November from the year-ago period but passenger vehicles marked growth of over 4 per cent, according to the Federation of Automobile Dealers Association (FADA).
Leading Indian steel companies have raised prices for the second time in November on the back of recoveries in several key consuming sectors. This is giving rise to optimism that the country is on the cusp of a quick and broad-based growth revival.
India's cabinet approved a proposal to provide production-linked incentives of about 2 trillion rupees ($27 billion) over five years to create jobs and boost manufacturing in the country, the finance minister said.
India’s Covid-hit auto sector is buzzing once again, thanks to massive pent-up demand and the emergence of a new class of buyers who want to avoid public transport because of pandemic fears. But experts are not sure if this signals a turnaround for the industry.
Several leading indicators, such as automobile sales, power and fuel consumption, demand for cement and steel and offtake of housing, personal and farm loans show the economy is slowly recovering in Q2 from the massive 23.9 per cent contraction in Q1. But a full recovery will be possible only next year.
The Covid-19 pandemic, the government’s drive for self-reliance and the geopolitical risks of China have handed India’s automobile sector the opportunity to emerge as a global player in terms of both auto components and vehicle sales.