Jaguar Land Rover Plans Big Changes in India with New Trade Deal
Luxury car brands are changing how they sell cars in India, and Jaguar Land Rover (JLR) is leading this shift with new plans for electric vehicles. According to Financial Express, JLR saw impressive growth in India last year, selling more expensive cars than ever before. But what does this really mean for the Indian luxury car market?
JLR has already built a strong position in India by assembling most of its Land Rover models at its factory in Pune. This approach, called Completely Knocked Down (CKD) assembly, helps the company avoid paying the full import taxes that make foreign cars so expensive in India. The company sold 6,183 cars in India last year, making India its third-fastest growing market with a remarkable 40% increase in sales volume.
How the UK-India Trade Agreement Changes Everything
The upcoming trade deal between the UK and India will dramatically reduce the taxes on cars imported from Britain. Richard Molyneux, JLR’s Chief Financial Officer, explained this benefit: “The FTA helps a lot of our future cars that we would not necessarily have a completely knocked down operation in India, particularly the BEVs.”
- Current import taxes are extremely high at 70% for cars under $40,000 and a staggering 110% for more expensive models
- The new trade deal will slash these taxes to just 10% for cheaper models and 50% for luxury vehicles
- This reduction means fully-built electric JLR vehicles could become much more affordable for wealthy Indian buyers without needing local assembly
JLR’s Big Move to Electric Cars Explained
JLR is completely changing its lineup of cars, moving away from traditional petrol and diesel engines toward electric power. The company has already stopped making several famous Jaguar models:
| Models Discontinued | When Production Ended |
| Jaguar XE, XF, and F-Type sports cars | Already stopped in May 2024 |
| Jaguar F-Pace SUV | Will finish production by the end of 2025 |
| I-Pace and E-Pace (made in Austria) | Production has already ended |
In their place, JLR will launch exciting new electric models, including the all-new electric Range Rover and the completely redesigned Jaguar Type 00. These cars represent a total rethinking of what luxury vehicles can be.
Smart Manufacturing Strategy
JLR’s approach to building cars for India is carefully planned. Cars assembled in Pune from imported parts (CKD) won’t be affected by the new trade agreement. However, fully-built cars (CBU) imported from the UK will become much more affordable.
Molyneux highlighted India’s importance: “India is an important market; it is a very high growth market and our brands have a lot of affinity. We will absolutely leverage the FTA to increase our revenue and share of the HNIs wallets in India.”
For Indian luxury car buyers, these changes mean more choices and potentially better prices on high-end electric vehicles. The new electric Range Rover and Jaguar Type 00 will compete with models from Mercedes-Benz, BMW, Audi, and Tesla. Will JLR’s bet on electric luxury in India pay off? The next few years will reveal how Indian buyers respond to these dramatic changes.
