Thursday, July 8, 2010

[nidokidos] Made-in-India tag for Land Rover

 

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Made-in-India tag for Land Rover

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The iconic British brand Land Rover is set to sport the 'Made in India' tag. Its price will come down significantly as Tata Motors, the owner of the 4X4 all-terrain vehicle, has decided to assemble some of the variants in India against costly imports.
According to sources, Tata Motors is planning to assemble the Freelander 2 in India. Freelander 2 is currently the lowest-priced Land Rover model in India and carries an ex-showroom tag of Rs 33.5 lakh in Delhi. Other models that the company sells under Land Rover brand are Discovery 4 and Range Rover, though these may not be assembled immediately.
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The sources said that Tata Motors plans to bring in the Freelander 2 through the completely knocked-down (CKD) route to assemble it. Currently, the model is imported and comes in as a fully-built unit, attracting cumulative duties of around 110%. The assembly operations will see the cumulative duties will go down by around 50%, bringing down its cost by a few lakhs of rupees.
Tata Motors is yet to decide on how much benefit will be passed on to consumers as it is working on investment required for starting assembly operation and other costs.
The sources added that assembly operation for Freelander should start at the company's Pimpri facility near Pune by year-end. The facility was previously used by Mercedes Benz and has been lying unused since the German carmaker moved to its new factory at Chakan, near Pune.
When contacted, a spokesperson for Tata Motors refused to comment. "Tata Motors does not have any information to share on this,'' the spokesperson said.

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While Tata Motors launched Land Rover and Jaguar models in India in June last year, it opted only for the import route against assembly operations, even though it is followed by other luxury makers like Mercedes Benz, BMW and Audi. The company's decision to assemble the Freelander 2 signals its bullishness on the potential of the brands in India.
The Freelander 2 competes with models like BMW's X3 and Audi's Q5. The local assembly will make the models highly competitive in terms of pricing, market analysts said.
Tata Motors has been expanding its retail network for Jaguar and Land Rover in India. Sales of Jaguar and Land Rover in India stood at 242 units in 2009-10. After Mumbai and Delhi, the company is now expanding its network to other cities like Hyderabad and Ludhiana.

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Dreams On Wheels: Jaguar-Land Rover

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http://www.nidokidos.org/dreams-on-wheels-jaguar-land-rover-t46448.html

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