In a move to combat the high cost of importing the vehicles to India, Jaguar is looking to localize assembly of its lineup within the region. The luxury automaker is hoping to have production of the Jaguar XF up and running within the next 12 to 18 months, but they're already setting their sights on some German rivals within the market as well.
More specifically, Jaguar wants to combat the likes of the 5 Series, A6, and E-Class by manufacturing more XF sedans to meet the increasing demand for luxury automobiles. A big part of increasing production is lowering its cost, and currently, the biggest cost to the company is the duty placed on importing a vehicle that has already been assembled.
By importing parts, rather than full vehicles, however, Jaguar can effectively lower the duty they pay from 100 percent to roughly 20 to 30 percent. "With the assembly of models in India, the pricing will come down and it will boost volumes. And larger the volumes, the better the profitability,"1 explains Mahantesh Sabarad, auto analyst with Fortune Broking.
Of course, any increase in profitability will also equate to more face-lifted and even entirely redesigned models at Jaguar/Land Rover Honolulu and other dealerships around the world. And increased growth is exactly what Jaguar is eyeing with this latest plan. At least, that's what a key parts supplier for the luxury automaker points out in saying, "JLR feels India and China will be the key growth drivers in the next five-10 years. Therefore, the company envisages a bigger assembly operation in India and joint venture partner in China to boost its overall growth."2
For more updates on Jaguar production, expansion, and models in the greater Honolulu area and beyond, be sure to stay tuned. Jaguar/Land Rover Honolulu, located at 744 Ala Moana Boulevard, Honolulu, HI, is dedicated to keeping you informed.