Chrysler's Indian unit has signed a INR4bn ($US101m) contract with a New Delhi-based car seat maker to source seats for its Jeep Wrangler.

This was just the beginning of Chrysler's strategy to outsource automobile parts from Southeast Asia and negotiations were on for more such contracts, the Business Line paper, citing an unnamed senior company official, said, according to Reuters.

"We buy $US40bn worth of supplies each year. We would like to procure as much as possible from South-East Asia," the official was quoted as saying.

The seats reportedly would be fitted in Jeep Wrangler vehicles made at Chrysler's Toledo plant in the United States, the reports added.