Jaguar likely to assemble XF in India

Local assembly will allow Jaguar to position the XF more competitively in India. Lower variants also in the pipeline.

EXCLUSIVE

The steep hike in customs duties on completely-built-units (CBUs) from 60 percent to 75 percent in the 2012 Budget has sharply pushed up the prices of imported cars. There has been no increase in tariffs on cars assembled from Completely Knocked Down (CKD) kits. Hence, CKD-built cars attract a much lower duty; a carmaker has to pay 30 percent customs duty on the car provided it comes with a pre-assembled engine, gearbox and transmission. If the components are further knocked down and assembled locally, the duty is only 10 percent. 

Among the luxury car brands, Jaguar has been hit the most with this year’s import duty hike as none of its cars are built in India. Its best-selling model, the XF in particular, has a serious price disadvantage against rivals like the Mercedes-Benz E-class, BMW 5-series and Audi A6, all of which are locally assembled. 

However, Jaguar plans to set up an assembly operation for the XF in the same facility where the Land Rover Freelander 2 is also assembled. Ratan Tata, in an exclusive interview to Autocar India, said: “We will look at assembling the XF in India if there is a business case for it.” Local assembly would allow Jaguar to launch lower variants like the XF 2.2 to compete head-on with the BMW 520d, Merc E220 CDI and Audi A6 2.0 TDi, which account for the bulk of volumes in the premium luxury car segment. 

Jaguar Land Rover combined sold approximately 2,300 cars in 2011. This year, the company is expected to clock close to 2,500 units.

Also read: Jaguar-Land Rover looking at assembly plant in Saudi Arabia

Copyright (c) Autocar India. All rights reserved.
An exclusive drive of the Kaptur – Renault’s upcoming premium crossover, a new Indian Speed Record, the all-new Audi A4, Track day 2016 and lots more!
What's in this issue?

comments powered by Disqus

notSet

Trending Now
Latest News
Brexit impact: JLR earnings take a hit even as sales increase
Parent company Tata Motors bears brunt of decline in JLR’s revenues...
1 hour ago   1 picture
Audi A6 Matrix petrol launched at Rs 52.7 lakh
Top-spec Audi A6 Matrix 35TFSI will be powered by a 190hp, 1.8-litre turbo...
3 hours ago   1 picture
Maruti Swift Deca edition teased
The limited-edition Swift is expected to feature cosmetic changes inside and...
6 hours ago   4 pictures
Hyundai i20 petrol AT to come in Magna variant
Hyundai i20 1.4 AT to come with an all-new 100hp engine; gets dual airbags...
6 hours ago   1 picture
2016 Toyota Etios facelift India launch soon
Updated Etios, Liva Platinum for Brazil get more equipment and refreshed...
8 hours ago   7 pictures

Autocar Magazine

Issue: 205 | Autocar India: September 2016

An exclusive drive of the Kaptur – Renault’s upcoming premium crossover, a new Indian Speed Record, the all-new Audi A4, Track day 2016 and lots more!
Autocar Magazine
Latest Poll
For riding around in the city, would you prefer a moto-scooter like the Aprilia SR150 or a motorbike?


or View results
Yes, these scooters are fun and way more practical
  73%
 
No, only a motorbike will do for me
  27%
TOTAL VOTES: 262

Vote now
View previous Polls »