In a bit to compete in the Indian market more promptly, the British subsidiaries of Indian auto giant Tata Motors – Jaguar Land Rover (JLR) – is mulling over the option of assembling its popular models in the Indian market. The new models which are expected to be assembled in the Indian market include sports utility vehicle (SUV) Range Rover Evoque and popular luxury sedan Jaguar XF. It is to be mentioned here that company already sells its locally assembled Land Rover Freelander 2 in the Indian market.
Assembling its cars locally will enable the company to position its portfolio models more competitively, strengthening its position against the German rivals likes of Audi , Mercedes Benz and BMW. The company currently has an assembling unit in Chikhale, Maharashtra, where it assembles Freelander 2 model. The remaining India portfolio models are currently being imported as completely built units (CBU) in the Indian auto market.
The vehicles imported as CBU’s attracts a high import duty of over 100 percent. On the other hand, the same vehicle if imported as a completely knocked-down unit (CKD), attracts an import duty of just 10 to 30 percent.
In last few years, India and China have emerged as key growth drivers for JLR with sales surging considerably. The firm looks forward to heavy growth in the Indian market in coming years. Thus, having a bigger assembly plant in India with more assembled models in its India portfolio will certainly benefit the British car maker in coming months
