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11/22/2024 01:18:25 pm

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Jeep Sees Sales Growth in China Due to Domestic Production

Jeep reported positive sales growth in China after going producing locally.

(Photo : Getty Images) Jeep reported positive sales growth in China after producing locally.

US car manufacturer Jeep has seen growing sales in China after it decided to produce domestically beginning with the Cherokee last year.

"To transition into a local player really did come at an important time for us. We are now able to position our vehicles where competitors were positioned," said Mike Manley, head of Jeep's global brand.  

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In 2015, Jeep's sales plunged by 28 percent to only about 64,000 units. However, sales skyrocketed after the company introduced Cherokee production at a local factory in Changsha last October. As a result, Jeep's sales soared 29 percent to about 33,500 units on the first quarter of 2016.

The production sprouted quickly, with Jeep introducing another local production for its Renegade model last April and another new crossover segment at the end of the year. In addition, another China-exclusive crossover will soon be unveiled, according to Automotive News.

The Cherokee plant can produce 246,000 units a year and also manufactures cars for Fiat. Meanwhile, the Renegade plant can manufacture 160,000 units.

The two plants are managed by GAC Fiat Chrysler Automobiles, a partnership with Guangzhou Automobile Industry Group Co.

According to Manley, China's industry sales are expected to climb between 6 and 7 percent this year.

"We're going to grow significantly more than that," he said. "We're looking for significant double-digit growth."

Locally-produced Jeeps help save the company from paying 25 percent tariff imports, thus capturing a wider band of the crossover and SUV segment.

Jeep's addition of Renegade has allowed it to cover nearly 20 percent more of the crossover customer base in the country, said Paul Alcala, vice chairman of FCA's local partnership.

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