FTA with UK lays the road for JLR to double India sales: CCO
India's recent free trade agreement with the UK will allow Jaguar Land Rover (JLR) offer more imported models to Indian consumers, said a senior company executive. This would help the British luxury car maker attain its aim of doubling annual sales in India over the next three years, the executive said.
Sales at JLR India have been on an upswing in the recent past. The automaker clocked a 40per cent surge in retail sales at 6,183 cars in FY25—the highest in its 17-year operations in the country. Wholesale volumes rose 39per cent to 6,266 vehicles. The company overtook Audi to emerge as the third-largest luxury car maker in India after Mercedes-Benz and BMW.
'We are excited about the FTA. It will bring more focus on the market,' said
Lennard Hoornik
, chief commercial officer, JLR. 'We would want to invest in India more than ever before and double the number of retailers we have. We are making record marketing investments in India,' he said, without elaborating.
India currently levies 110per cent duty on all fully-built imported cars. Under the FTA, import duties on UK-built models will be reduced, in a staggered manner, over the next few years.
'Any reduction of trade obstruction' is very good, said Hoornik. With the exception of the Defender SUV—which is imported from Europe and will also be locally assembled in India at some point, all other models that the Tata Motors unit sells in India, are locally assembled, he said.
Hoornik—who is responsible for JLR's global sales—was speaking to a group of Indian journalists at the company's headquarters in the UK. Over the next 12-18 months, JLR plans to launch eight models including new models and refreshes. This will include the Jaguar Type 00—the company's maiden EV offering under the "Reimagine Strategy" announced in 2021; the Range Rover electric SUV, and special edition models as well as refreshes of existing vehicles.
To be sure, JLR is placing huge bets on EVs at a time when carmakers globally are curtailing their EV plans amid slower-than-expected transition to such eco-friendly vehicles. Hoornik however noted that JLR's flexible powertrain strategy will hold it in good stead.
'We have been focussed on flexible powertrains. Hence, for us, it's not a question of over investing in EVs and under investing in internal combustion engines. What is most difficult is forecasting the customer demand,' Hoornik told ET.
Separately, Rajan Amba, managing director, JLR India said the company will defer plans to launch more imported models till the India-UK FTA is fully implemented.
JLR is also awaiting clarity on duty cuts and the number of cars that can be imported in a single year at lower duties.
'The FTA definitely queers the pitch for imported models, but it will slow down decision making till the agreement is executed,' said Amba, adding that there are no plans to localise more models. He also noted that since the Defender is imported from Europe, it will not stand to gain from the FTA.
With a current order book of 4,000 vehicles, Amba expects JLR India's annual sales to rise to 15,000 to 18,000 vehicles over the next three years.(The reporter is in Gaydon, UK at the invitation of JLR.
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