JLR mulls assembling XF sedan and Range Rover Evoque SUV in India

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The luxury car market in the country is ruled by BMW, Mercedes-Benz and Audi. JLR intends to increase its presence in the segment through introducing its new sedan and SUV to catch up with the growing demand for the luxury cars in the country. The auto major mulls to assemble the upcoming cars in the country to place the price of the upcoming models competitively. JLR's Freelander 2 SUV is the only vehicle assembled at the Chikale factory, the rest of its models in India are imported through the CBU route. The assembled cars attract a lower excise duty of 10-30% against the 100% import duty levied on the CBU. It is reported that JLR for the first time convened a meeting outside UK inviting 20 vendors from across the country and another 20-30 vendors from U.K along with the company head, Mark Wallace to increase its assembling capacity in India.

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The company targets a market share of 20% in the coming three years. India and China are the biggest emerging car markets globally and JLR intends to capitalize on these markets to increase its market share in the coming five to ten years. Advancing in that direction, the auto major hopes to increase its assembly operations in India. BMW has surpassed the sales of Mercedes-Benz in the luxury segment and Audi positions itself in the third position in the race. However, according to Peter Honegg, MD and chief executive of Mercedes-Benz, JLR could pose to be the biggest threat in future.  The cars with a price tag over Rs 20 lakhs are branded as the luxury cars, which are expected to sell around 23,000 units during this fiscal. India stands to be the top most emerging car market in the world observing a growth of 35-40% every year.