JLR India assembly line to be set up at the company’s Pune plant through additional investment.
Tata-owned Jaguar Land Rover is committing itself to an additional investment in India by planning to invest in an engine assembly and manufacturing line at the Pune plant. The additional investment in the Indian market will help the luxury carmaker to fight strongly against its German rivals – Mercedes, BMW and Audi.
An investor presentation made by the company talked about the India engine facility but the numbers with regards to the investment were not disclosed. Import duty on luxury cars varies depending on how they are brought to India, as knocked down parts or as completely built units. Based on the level of local assembly, the tax rate can either be 17%, 33% or 70-110%, with CBUs facing the highest duties.
Through the investment in local engine assembly line, JLR India will defeat the high duty structure for fully imported engines which will help them save at least 20-25% of the final price of vehicles. The automaker will be manufacturing the Ingenium series of engines for the domestic market. According to people in the know, the company is also likely to manufacture the 2.0-litre diesel engine which is used predominantly in its current set of cars.
JLR registered 83% growth in FY2018 by selling 4609 cars. The exceptional performance can be attributed to the price correction that happened in the last fiscal and the sustained product launches throughout the year with an expanding retail footprint.
JLR India Assembly Line
– Tata-owned JLR to set up a manufacturing line for engines at Pune facility
– Amount of the additional investment and investment timeline yet to be disclosed
– The company achieved a double-digit market share for the 1st time during the last fiscal
Source – ETAuto.com