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.
Crossovers, SUVs, supercars and compact sedans: there’s something for everyone in our May 2014 issue.
What's in this issue?

comments powered by Disqus

Jaguar likely to assemble XF in India

notSet

Most Read
Latest News
New Volkswagen Jetta sedan coming early 2015
Volkswagen Jetta sedan to get a substantial styling update; Will hit...
1 hour ago   3 pictures
Beijing 2014: LWB Range Rover Hybrid launched
The long-wheel based Range Rover will be the first diesel-electric hybrid to...
5 hours ago   1 picture
Toyota Yaris facelift revealed
Updated Toyota Yaris, which will adopt some design themes set out by the new...
10 hours ago   1 picture
Beijing 2014: Porsche Macan gets 2.0-litre four cylinder engine
The Porsche Macan will soon come with a 2.0-litre four-cylinder turbo-petrol...
13 hours ago   4 pictures
Emphasis on alternative fuel vehicles at Paris 2014
Special track outside the venue will allow visitors to test drive some of...
14 hours ago   1 picture

Autocar Magazine

Issue: 177 | May 2014

Crossovers, SUVs, supercars and compact sedans: there’s something for everyone in our May 2014 issue.
Autocar Magazine
Latest Poll
Which hatchback would you choose out of these two?


or View results
Datsun Go
  56%
 
Maruti Wagon R
  44%
TOTAL VOTES: 1971

Vote now
View previous Polls »