Automobile major Fiat Chrysler Automobiles (FCA) has drafted $280m investment plan for funding the production of new Jeep vehicle as part of its joint venture Fiat India Automobiles, floated with Tata Motors.
The amount will be for its manufacturing unit in Ranjangaon in the west Indian state of Maharashtra, where the output of the vehicle will begin sometime between April and June in 2017.
FCA CEO Sergio Marchionne said: "Today marks an important step as we continue to expand the availability of Jeep products around the world... Earlier this year, we indicated that 2015 would be a transformational year in the globalization of the brand and this announcement reinforces that commitment. Establishing Jeep production in India will give us the opportunity to offer even more people the chance to experience the freedom and adventure that can come from behind the wheel of a Jeep vehicle.
"We are pleased that this investment will strengthen FCA presence in India and are confident in the ability of the joint venture to produce world class products like those carrying the legendary Jeep nameplate."
The Ranjangaon unit will emerge as the fourth facility outside the US for the manufacturing of jeep vehicles. While such vehicles are being manufactured in Italy and Brazil, production will start in China during the fourth quarter of 2015.
The FCA posted sales of one million Jeeps across the globe, clocking a record for the third year in a row, the company said in a statement.
Maharashtra chief minister Devendra Fadnavis said: "The association of Fiat with Maharashtra is not new and dates back many decades.
"We welcome Fiat Chrysler's decision to invest in the state of Maharashtra and reaffirm the Government's interest in expanding the relationship with Fiat Chrysler by fully supporting this new initiative."
