Why are Jeeps so Expensive: Top 8 Reasons

Jeep is an automobile brand that has produced vehicles with not only rough and tough looks but amazing off-road capabilities. But one question that concerns Indian buyers is why Jeep Cars are expensive in the domestic market. This blog will talk about the main reasons that make Jeep cars expensive.

1. Brand Positioning 

Jeep, on a global level, positions itself as adventurous, free-spirited and tough. This strong brand recognition makes the Jeep brand itself a premium automobile company in the Indian market, charging a premium price as compared to other brands. It also has to do with the love Indians have for SUVs and the road presence they command.

2. Advanced Technology and Features

For years, Jeep’s lineup of cars has been known for its high-tech and modern offerings, stylish designs and solid build quality. From the super intuitive touchscreen infotainment systems to crucial safety features, Jeep vehicles are a cut above the rest and worth the extra money. As a result, importing and integrating these technologies adds up to the cost of Jeep cars in India. 

Read Also: Top 3 Upcoming Technology in Cars in India

3. Exceptional Performance and Off-road Capability

 

Jeep cars are built tough to tackle all kinds of terrains, in the aspect of strength, superior four-wheel-drive systems and high ground clearance. However, such excellent performance and off-road capabilities do not come cheap as the technology and materials used to develop such features increase the production costs and hence the retail price in India, leading to an increase in car prices. All cars in the Jeep stable come with a four-wheel drive option in India.

4. Limited Number of Showrooms and Service Centres

 

While mass-market manufacturers like Maruti Suzuki and Hyundai have a vast network of dealerships and service centres spread across the length and breadth of the country, Jeep is comparatively a newcomer in the automotive market. It is this exclusivity of owning a Jeep comes with a big price tag, as consumers are willing to spend more for this dream vehicle brand.

5. Premium Brand Experience 

The US car brand uses social media at its best in advertising offroading trails, uniting Jeep owners India-wide. This gives the impression of Jeep being a premium brand. Besides, having a Jeep is not only having the automobile itself, but it also includes all the perks that come with it. From individual approaches to customer support service to special events and opportunities, Jeep owners get a taste of the luxury and status that they have to pay for. 

6. Customisation Options

Jeep has come up with many choices that enable the buyer to customize the car to his or her choice and desire. For instance, the Jeep Wrangler SUV can be customised heavily with offroading doors, roof and water-wading accessories. Although this level of personalisation enhances the ownership experience it also has its costs which in turn affects the price of Jeep cars in India. 

7. Limited Production Capacity

In comparison to other brands, Jeep has a relatively low production output for its cars which means that sometimes it may not be in a position to meet the demand and supply its cars to the market. This helps Jeep to price its vehicles high to make the cars less affordable to many people and in the process control the demand of its cars. Jeep manufactures its cars from its three plants and has 84 showrooms spread across 75 cities. 

8. Resale Value and Brand Equity 

Nonetheless, Jeep cars are quite expensive when bought brand new but they retain their market value when resold. This may be one reason why you may consider the high upfront cost initially as it would be recovered later. The company has cultivated a good image of the brand as a reliable and durable car, which positively influences the car’s resale value and makes Jeep a good investment for the future. 

Read Also: Buying a New Car: What to Watch Out For

Frequently Asked Questions

Why are Jeeps more expensive than other brands in India?

Jeep cars are expensive for a variety of reasons: brand value, customisation options and limited production capacity. 

Is Jeep successful in India?

According to reports on the web, Jeep sells over 500 units per month in India. However, the brand is working on cost-effective measures to bring down costs.

What makes Jeep cars so special?

Jeep ensures to make extremely durable and rugged cars and has expertise in building off road-capable vehicles. This leads to Jeep enjoying a niche audience of car buyers.