Jaguar is planning to assemble its XF diesel in India by 2013. According to the reports, the plans for assembling some of the cars from its impressive line up in India, is under consideration. Jaguar Land Rover (JLR), the premium multinational automotive giant owned by Tata motors assembles Land Rover Freelander at its manufacturing unit located in Chikhli of Pune district. Due to huge market response for its entry level models, Jaguar wants to assemble the diesel XF in the country. The car is loaded with a 3.0 litre V6 engine that is capable of generating 273 hp power and 600 Nm torque. In 6 seconds, the car can reach 100 kmph from stand still.
Jaguar is planning to provide a more power packed V8 engine to driving enthusiasts. This powerful engine help the car attain100 kmph speed mark from 0 in just 5.5 sec, owing to the massive power output of 383 hp and 515 Nm torque. The company has no plans to bring its double espresso 5.5 litre V8 Supercharged to India, although it will introduce an affordable 2.2 litre diesel engine soon.
Priced at the peak in the segment at Rs. 56.45 lacs (ex-showroom, Mumbai), compared to Audi A6 price of Rs. 47.50 lacs and Rs. 49 lacs of BMW Series 5, the Jaguar XF still fares well in the Indian market. If the demands for the car do not fall, assembling it locally will increase its sales figures and profit margins since Indian government levies tax of more than 110% on every imported vehicle. JLR may bring down the price of XF model by couple of lacs in order to make it more competitive to maintain the brand equity.
As stated by an analyst at domestic brokerage firm, IIFL limited, Joseph George, “JLR may be able to save up to Rs.10 lacs as a result of assembling the car in India. However, the company may not pass on the entire benefit to the customers and may like to keep the gain in margins to itself.” He further added that the reason why Hyundai India and Toyota didn't offer price cut after starting local production is that lowering the price too much casts a negative impact on the brand image.
With 24,000 units sold in FY 2011, the Indian luxury car market is growing at a steadfast rate and is expected to achieve the figure of 35,000 cars by this year end. Local assembly of the car help the company get control over the price and attain higher margin.
