Fiat Chrysler management is counting on new Jeep models and economic growth in the country.
Jeep SUVs are extremely popular in the US. But in other countries, their sales are not so high yet. And so Fiat Chrysler decided to correct the current situation, starting with Russia.
SUV sales volumes in Russia today are too low for the legendary brand. But that wasn't always the case - according to Wards Auto, 8,221 Jeeps were sold in the country in 2014. Then in 2015, sales fell immediately to 75% and amounted to just over 2,000 units. In 2016, the decline continued - only 1,269 units were sold.
The situation began to improve only in 2018, when sales began to slowly, but still increase. 1,653 units were sold in 2019, up 17% from the previous year, but still far from what Fiat Chrysler would like to achieve in the world's largest country. However, despite the fact that sales volumes are still low, the corporation sees great potential in the Russian market.
Sales growth is expected to be supported by factors such as economic growth in the country and the introduction of new Jeep models - Wrangler, Compass and Gladiator. But there are fears that too high duties will hinder sales, leading to an increase in the cost of cars. So, while the price of Renegade, one of the most affordable models of Jeep, in the US is 42 thousand dollars, in Russia it rises to 100 thousand, which is dangerously close to the luxury segment.
How it will be in practice - time will tell. The struggle will be difficult, but Jeep in Russia has every chance to reach the 2014 figures in 2020. And even surpass them.