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.
The Porsche Macan tested on Indian roads, the first images of the new Hyundai i20 and lots of comparison tests in this issue of Autocar India.
What's in this issue?

comments powered by Disqus

Jaguar likely to assemble XF in India

notSet

Most Read
Latest News
Infiniti previews new concept car
Infiniti will reveal the concept car at the Paris motor show 2014; promises...
9 hours ago   1 picture
Yokohama India introduces mud terrain tyres
The Yokohama Mud –Terrain (M/T+) tyres are a part of the Geolander...
11 hours ago   1 picture
Land Rover Discovery Sport interior revealed
The Discovery Sport will have a 5+2 seating; to debut at Paris motor show in...
12 hours ago   4 pictures
Mercedes to enhance showroom experience
Mercedes will have a lucky draw campaign; winners to get goodies, flight and...
14 hours ago   2 pictures
TVS Scooty Zest 110 launched at Rs 42,300
The new Scooty Zest 110 is powered by a 109.7cc engine
16 hours ago   3 pictures

Autocar Magazine

Issue: 180 | August 2014

The Porsche Macan tested on Indian roads, the first images of the new Hyundai i20 and lots of comparison tests in this issue of Autocar India.
Autocar Magazine