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Fiat Chrysler Automobiles NV (FCA) will invest $250 million in India to manufacture a mid-size, three-row SUV, assemble the Jeep Wrangler and Jeep Cherokee, and launch a new version of its Jeep Compass SUV.
FCA's three-row SUV will compete with Ford Motor's Endeavour and Toyota Motor's Fortuner SUVs in India.
Adding new vehicles to its portfolio will help FCA increase local sourcing of components, achieve better economies of scale, reduce costs, and boost sales.
FCA currently has less than a 1 percent share of India's passenger vehicle market.
The new SUVs will be produced and assembled at its plant in western India, which it jointly owns with domestic automaker Tata Motors.
Indian automakers have been struggling to cope with slowing domestic demand beginning in 2019, even before it got stung by the effect of the pandemic.
Japan's Honda Motor Co closed one of its two plants in India while General Motors last month stopped locally producing cars.
The latest investment will bring FCA's total in India to over $700 million.
