Imported cars seems to be attracting teeming custom duties. One such car is the Jaguar XF, which has high demand. However, the lofty price tag the XF holds against Mercedes-Benz E-class, BMW 5-series and Audi A6, is a major concern for Jaguar.
Currently the XF drives into India as a Custom Built Unit (CBU), whereas its rivals are locally assembled. Custom duties for a Custom Built Unit car is 75% and for a Completely Knocked Down (CKD) car it is 30% provided the car comes with gearbox, pre-assembled engine and transmission. The duty is further driven down, if the manufacturer further knocks down the components and locally assemble it.
For the moment, the biggest issue surrounding Jaguar is the lofty price tag. Jaguar in the coming days, is looking at driving down the XF into india, via the CKD route to attract lower custom duties. Ratan Tata, in an exclusive interview to Autocar India, said: "We will look at assembling the XF in India if there is a business case for it."
Drivespark feels, it is important for Jaguar to take this lead and drive down the XF via the CKD route. The premium luxury car segment is booming and If Jaguar does not take the initiative, its rival BMW, Mercedes and Audi will surely be way ahead!
On a personal note, what is your choice when it boils down to BMW 520d, Mercedes E220 CDI, Audi A6 2.0 Tdi and Jaguar XF 3.0 liter V6 Diesel? Can we expect a trimmed down 2 Liter diesel variant of the XF soon? Stay Tuned!