**Tata Motors’ Jaguar Land Rover to Assemble Defender SUV in India**
Jaguar Land Rover (JLR), a subsidiary of Tata Motors Ltd, is set to begin local assembly of its popular Defender sport utility vehicle (SUV) in India. This move comes as the British luxury brand aims to maintain its local operations for existing models, particularly in light of the recent India-UK free trade agreement.
During a post-earnings call for the January to March period, JLR’s Chief Financial Officer Richard Molyneux confirmed that most of their models are already assembled at their Pune facility. He stated, “Plans are in process to assemble the cars locally,” emphasizing the company’s goal to cater to the growing demand from ultra-high-net-worth individuals in India.
Analysts predict that local assembly could lead to a significant price reduction of over ₹20 lakh for the Defender, which currently has ex-showroom prices ranging from ₹1.05 crore to ₹2.79 crore. This price adjustment would enable the Defender to compete more effectively in the sub-₹1 crore segment, particularly against competitors like Audi’s Q7.
The announcement follows the recent establishment of a free trade agreement (FTA) between India and the UK, which will reduce tariffs on completely built units from 110% to 10% under a quota. This agreement is seen as a significant trade achievement for both nations, especially as JLR seeks clarity on duties in the US, one of its largest markets. Notably, JLR accounts for approximately 69% of Tata Motors’ overall revenue.
Currently, the Defender is manufactured at JLR’s £1 billion facility in Nitra, Slovakia, and imported as completely built units, incurring high tariffs. In contrast, completely knocked down (CKD) units attract a lower effective tariff of 16.5% prior to the FTA.
JLR’s decision to assemble the Defender locally follows the successful local assembly of its Range Rover and Range Rover Sport models at the Pune plant, which began a year ago. This initiative previously resulted in a price drop of ₹44 lakh for one of the Range Rover models, showcasing the potential benefits of local assembly.
While the timeline for the Defender’s local assembly remains unclear, JLR’s sales in India have seen remarkable growth. The company achieved its highest-ever retail sales last financial year, with a 40% increase in volumes, totaling 6,183 cars. The January-March quarter alone saw a staggering 110% growth, with Defender sales surging by 90%. The locally assembled Range Rover and Range Rover Sport models also experienced significant growth, with increases of 72% and 42%, respectively.
As JLR continues to expand its presence in the Indian market, the local assembly of the Defender is poised to enhance its competitiveness and appeal to a broader customer base.
**FAQ**
**Q: When will Jaguar Land Rover start assembling the Defender in India?**
A: While specific timelines have not been disclosed, plans for local assembly of the Defender are currently in process as part of JLR’s strategy to enhance its market presence in India.
