JLR eyes India’s strengths in IT, auto parts

While India is growing stronger as a market to sell its vehicles, Jaguar Land Rover (JLR) also sees strong sourcing potential in India for its overseas operations. The focus is primarily on the talent pool available in India. “India’s computer literacy will add a lot of value to international OEMs like JLR”, says Carl Peter Forster, Group CEO, Tata Motors. JLR currently has a 500-strong team in India.

JLR sold 200 units in India in its first year of operations. The first dealership was set up in June 2009. During 2010-11, sales rose to 891 units. Rohit Suri, head – premium cars division, Tata Motors, says that sales of Jaguar’s top-of-the-line XJ model outsold its competitors BMW’s 7-series and Audi A8 during January and February this year, and there’s a waiting list for the Jaguar XF in India.

Thanks to the growing economy, JLR is gaining traction in India. The market will also see quite a few of the “40 product additions” that JLR plans over the next five years. Meanwhile, JLR has taken its India operations to the next level by starting local assembly of the Land Rover Freelander 2. The vehicles are supplied in Complete Knocked Down (CKD) form from Jaguar Land Rover’s Halewood manufacturing plant in Liverpool, UK. The assembly plant is housed in the facility at Pimpri, adjacent to the Tata Motors’ plant, which was earlier used by Mercedes-Benz. The facility in Pune will be overseen by experienced manufacturing and quality managers who have moved to India from the UK.

The Freelander 2’s CKD version attracts a 30 percent duty as against 60 percent earlier when it was sold as a fully imported vehicle. The Freelander 2, available in India in two variants, has now become cheaper by Rs 2.5 lakh for the base variant with a price tag of Rs. 33.89 lakh (ex-showroom price Mumbai, pre-octroi) and the top-end version has become cheaper by around Rs 3 lakh and retails for Rs 38.15 lakh. Ralf Speth, CEO, Jaguar Land Rover, said: “It is a great time to be expanding our operation in India due to the increasing demand for luxury products and the strength of the Indian economy.” Meanwhile, as reported in our June 1 issue, JLR is looking at setting up an engine assembly plant in India next.