What Went Wrong With This Popular SUV Maker? » MotorOctane

The Indian automotive industry is one of the biggest in the world. Automakers from across the world try to enter this market with big dreams of success. Automakers such as Kia, Volkswagen, Skoda, and others have experienced great success over the years. But one automaker couldn’t make its mark in India and has now faded into the shadows. But why is the brand failing?
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Who Are We Talking About?

The main attraction of an SUV is its off-roading capabilities and road presence. And once upon a time, the word “Jeep” used to be synonymous with SUVs. You talk rugged SUVs, and you immediately think of the Willys Jeep. Even Mahindra tried to replicate it with the Thar, and people mistook it for a Jeep. Furthermore, Indians love an SUV. On paper, the equation seems simple: “ SUV + India = Success”. But Jeep completely messed it up.

After looking at its sales, you can see why we make such a bold statement. Last month, Jeep sold a total of just 228 units across India. Maruti sold twice as many Jimmys in the same timeframe. Additionally, this number may include shipments to dealers for test units, which could lower the actual sales figure. SO what is the reason for such sales?

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Competition

When the Compass, Jeep’s best-selling SUV, was launched, it was pretty successful. Jeep’s Indian adventure was off to a great start. But, back in 2017, the competition was pretty low. The Jeep’s main and only competition was the Hyundai Creta. And back then, the Jeep brand was still a major global brand with a huge fan base. 

But the market has grown ever since. The mid-sized SUV segment has become the most popular segment in the market, and customers get more options to choose from. 

The same case applies to its other models as well. Jeep unveiled the Meridian to take on the Fortuner. And usually, if an SUV tries to compete against the Meridian, it is being set up for failure. And failure it was. If Jeep had been marketed better, who knows, it could have at the very least taken up the Kodiaq’s segment. 

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Poor After-Sales Service

The After-sales network plays a big part in the customer’s mind before buying a new car. And the Jeep falls behind big time in this regard. Most customers would obviously choose an automaker with an extensive service network, such as Mahindra, Maruti Suzuki, or Hyundai. Moreover, Jeep entered the Indian market as a subsidiary of Fiat, which was notorious for its poor sales service. Jeep failed to build a stronger support network, which is now leading to its downfall. 

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Outdated Products

The Compass could have maintained its success if Jeep had tried. But it didn’t. The Compass is essentially the same as it was 8 years ago. The American automaker has added new features, but the public did not find this effort sufficient. Had Jeep tried harder with the Compass, it could have sustained its success and brand value. 

Unlike its other SUVs, like the Meridian and Grand Cherokee, it doesn’t have a particular USP that would make people buy it. You get more features and a more powerful engine on SUVs that sit a couple of segments below.  Moreover, the build quality of its vehicles isn’t exquisite either. 

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Pricing

The only SUV whose price tag makes the most sense in the Jeep lineup is the Meridian. All the other cars have been priced without any thought whatsoever. For instance, the Compass top model can touch a whopping Rs 37.46 lakh (on-road, Mumbai). The Mahindra XUV7XO, one of its rivals, offers more features and practicality for almost Rs 7 lakh less.

The Wrangler sits in a deserted price bracket between Rs 76 lakh and Rs 86 lakh (on-road, Mumbai). Unless you are a die-hard Wrangler enthusiast, it makes little sense to buy one. Jeep’s flagship SUV, the Grand Cherokee, costs Rs 76 lakh (on-road, Mumbai) is also priced too high for the general public. With such prices, Jeep SUVs are stranded between different price segments. They are too expensive for the general public, but not premium enough to compete with the big shots from Germany (BMW, Audi, and Mercedes). 

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Lacklustre Engine Choices

There is no petrol option available for the Compass or the Meridian. Both these models share the same 2.0-litre diesel engine. On the other hand, there are no diesel alternatives for the Grand Cherokee or the Wrangler. You pay Rs 75 lakh for the Grand Cherokee or the Wrangler, two of Jeep’s most iconic SUVs, and yet you are stuck with a lacklustre 2.0-litre petrol. Maybe if Jeep were brave, it could have offered us an American V8 for the excitement factor. 

Interestingly, speculation suggests that the Compass and Meridian could soon get a petrol alternative. These models are expected to use Tata’s newly-developed 1.5-litre turbo-petrol engine. 

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