In a groundbreaking decision, Tata Motors has significantly reduced the prices of Jaguar and Land Rover (JLR) vehicles in India. This strategic move, facilitated by the local assembly of these luxury models, is poised to shake up the market, creating tough competition for established brands like BMW and Mercedes.
Local Assembly Boosts Affordability
According to a recent report by the Pune press, JLR has started local assembly of the flagship Range Rover model in India. This decision is in line with the government’s ‘Make in India’ initiative and aims to make luxury vehicles more accessible to Indian consumers.
Currently, JLR’s Pune plant assembles several models, including the Range Rover Velar, Range Rover Evoque, Jaguar F-PACE, and Discovery Sport. Now, the flagship Range Rover and Range Rover Sport will also be assembled locally. This shift is expected to reduce prices by 18 to 22 percent, potentially slashing costs by up to Rs 56 lakh.
Availability and Market Impact
The locally assembled Range Rovers will be available for delivery by the end of this month, with the Range Rover Sport expected to hit the market by August. This move is anticipated to make these high-end vehicles more competitive in the luxury car segment, posing a significant challenge to BMW and Mercedes.
Statements from Leadership
N. Chandrasekaran, Chairman of Tata Sons, expressed his optimism about the Indian market, referring to the local assembly of flagship models as an “inflection point” for the company. Geraldine Ingham, Managing Director of Range Rover, highlighted the high demand for Range Rover models in India and emphasized the strategic importance of this market in JLR’s global success.
Financial Performance and Future Prospects
In the previous financial year, JLR recorded revenue of Rs 4,000 crore in India, with total sales reaching 4,500 units. The local assembly of flagship models is expected to significantly boost these figures, enhancing the company’s market presence and making luxury more affordable for Indian consumers.
Conclusion
Tata’s decision to locally assemble Jaguar and Land Rover models marks a significant milestone in the Indian automotive market. By reducing prices and increasing accessibility, JLR is set to attract a broader customer base, intensifying competition in the luxury car segment. As JLR strengthens its foothold in India, it will be interesting to see how rivals like BMW and Mercedes respond to this bold move.
