Jeep just started selling vehicles in India, but after looking at Jeep India’s facebook page we realized they aren’t very happy about having to pay $107,000 for a Jeep Wrangler. And we can’t really blame them.
Watch this video to find out why Jeep and FCA can sell these vehicles for nearly 3x as much as in the USA.
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The “Jeep” name is known around the world for quality, ruggedness and for ultimate customization.
They’re sold in over 120 countries, and recently started being sold in India.
That’s great, right? That means more people get to enjoy one of the best vehicles ever made.
Except the people of India aren’t very happy with the pricing and they’re taking to social media to let out their anger.
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Although FCA’s latest venture with Jeep is bringing them to India, the plan has been in the works for years.
To start, they’re selling three vehicles, the Grand Cherokee, the Grand Cherokee SRT and the Wrangler Unlimited. Which, if you ask me, are fine choices.
We originally weren’t going to make a video on this, but then we checked Jeep India’s facebook page and realized there’s some interesting things going on here.
There’s numerous comments from people saying they’re happy they are able to buy a Jeep, but a lot are also saying it’s simply too expensive. And we’d have to agree.
In the US a JKU Sahara has an MSRP of about $33,800. The same vehicle is sold in India for ₹ 72 Lakhs, which is $107,000 USD. That’s crazy, right?
Indian Jeep buyers will pay over 3 times more for the same vehicle. So now we’re starting to see where their upset comes from.
We actually found a response on Jeep India’s facebook page which explained the high cost. The vehicles being sold in India are being imported from the US and are subject to import duties and sales tax.
Our research showed an import duty of 120% for “Completely Built-up Units” and a 30% sales tax on SUVs slapped on top.
So let’s do some basic math. The Wrangler’s starting price is about $107,000. A 30% sales tax is $32,000 which means FCA gets about $75,000 for each Wrangler sold.
At a 120% import duty it would cost about $40,500 to bring a US made Jeep into India. That means FCA walks away with $34,500 from the sale of a single $107,000 Wrangler. And that doesn’t even count their overhead costs or material costs!
So FCA is making about the same per vehicle in India as they are in the USA but theyre doing a whole lot more work to get them over there and they have to charge their customers a ton more because of the sales tax.
However there are plans to bring that price down, and hopefully by a lot. FCA is investing $280 million into a new manufacturing plant with Tata Motors, who are the 5th largest vehicle manufacturer and based right in India.
Jeep has yet to announce what vehicle will be built at the new plant, but we’ve got two ideas. Jeep keeps calling it “all-new” so it could be a whole new vehicle designed for the Indian market, /OR/ it could be the new JL. At this point it’s all a guess.
What do you think Jeep will be building in their new Indian facility? Let us know in our poll right here and then let us know your thoughts in the comments below.
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Until next time, I’m Ken with 4WheelOnline and you’ve just been refreshed.