It's all about ATP, forget volume

Strabisums recently announced it’s Jeep brand is abandoning China, after seeing volume drop 90% in five years.

My fearless forecast is Jeep will bail out of India next, as Jeep continues to demand high ATP and GP, in a market that is very price sensitive.

Here’s Jeep, announcing a last ditch attempt to be relevant in India, but refusing to be competitive.

Jeep to launch two new SUVs in India to boost sales

Jeep, which has less than a 1% share of India’s car market, said last year it would invest $250 million to launch four SUVs in a country where rivals Hyundai Motor and Kia Motor dominate the segment with more affordable vehicles.

Meunier (chief executive at Jeep) said he was “not happy with the volumes in India” but would not reduce the price of vehicles just to increase the company’s market share.

Jeep sells 15,000 SUVs a month in (Brazil) across three models versus less than 1,000 SUVs a month in India…

Last year, 3.08M new cars were sold in India, vs 1.56M in Brazil. Jeep India’s Ranjangaon plant, a 50/50 JV with Tata, has a capacity of some 240,000 cars/year. Fortunately, the plant also produces the Tata Punch and Nexon, which sold 11,000 and 5,400 respectively last month, so Ranjangaon’s production is 94% Tata.