Jaguar Land Rover study­ing full pro­duc­tion in In­dia

The Pak Banker - - COMPANIES/BOSS -

Jaguar Land Rover (JLR) is in­ves­ti­gat­ing the po­ten­tial of man­u­fac­tur­ing cars in In­dia, com­pany sources said, as the Bri­tish lux­ury car­maker looks to build on its growth in emerg­ing mar­kets with the help of In­dian par­ent Tata Mo­tors.

JLR, which has rid­den a wave of surg­ing de­mand in China and other emerg­ing mar­kets to post record prof­its over the past year, is "ac­tively ex­plor­ing the pos­si­bil­ity" of build­ing cars from scratch in In­dia, said one com­pany source. "The idea is be­ing looked into, with the (Jaguar) XF and (Land Rover) Free­lander the ob­vi­ous can­di­dates," said an­other source with knowl­edge of the mat­ter.

The Bri­tish brands, which al­ready as­sem­ble two models in In­dia us­ing parts and en­gines shipped from fac­to­ries in the UK, will also be­gin as­sem­bling its pop­u­lar Range Rover Evoque in the coun­try soon, the first source said with­out pro­vid­ing de­tails.

Build­ing cars in In­dia, which has devel­oped into an emerg­ing mar­ket ex­port hub for many global car­mak­ers, would al­low JLR to skirt high im­port taxes on lux­ury cars, which the coun­try's fi­nance min­is­ter pro­posed rais­ing to 100 per­cent from 75 per­cent in his bud­get speech last week.

"Jaguar Land Rover has am­bi­tious plans to ex­pand its man­u­fac­tur­ing foot­print and in­crease pro­duc­tion in mar­kets out­side Bri­tain," Del Sehmar, a Mum­bai-based spokesman for the com­pany, told Reuters. "We con­tinue to ex­am­ine op­tions to ex­pand our range of lo­cally as­sem­bled prod­ucts," he said, re­fer­ring to In­dia.

JLR will ex­hibit a new 9speed au­to­matic Evoque and an elec­tric-pow­ered ver­sion of its Land Rover De­fender at the Geneva Mo­tor Show next week.

Bought by Tata for $2.3 bil­lion from Ford in 2008, JLR has de­fied those scep­ti­cal of its fu­ture un­der In­dian own­er­ship to roar back into profit over the past three years as the main growth driver for its now-strug­gling par­ent.

Con­tin­ued growth in emerg­ing mar­kets such as In­dia and China, which ac­counted for 22.3 per­cent of its sales in the De­cem­ber quar­ter, is key for JLR as it em­barks on an ex­pen­sive over­haul of its pro­duc­tion and prod­uct clout.

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