JLR planning to manufacture cars in India

The British luxury car maker Jaguar Land Rover (JLR) is doing a feasibility study to see if they can fully manufacture some of their cars in India. A strategy that could help Tata owned luxury brands to grow more in India and compete with their German rivals – Audi, BMW and Mercedes. The news has come in within days of government announcing hike in import duty from 75 per cent to 100 per cent on premium cars.

The demand for premium cars in steadily growing in India and proximity to China, which is the second biggest market for JLR will certainly influence their decision. The operational costs are also low in India as compared to UK with less expensive skilled labour being one of the major factors. Currently, the company is planning to start with the Jaguar XF series and the Freelander 2. Both of these cars are assembled in India and the company is also planning to start selling Range Rover Evoque through complete-knocked-down (CKD) from current completely-built-unit (CBU) route, which will result in a price drop of this hot selling crossover.

"Jaguar Land Rover has ambitious plans to expand its manufacturing footprint and increase production in markets outside Britain. We continue to examine options to expand our range of locally assembled products" said Del Sehmar, Head of PR & communications, Jaguar Land Rover India.