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Land Rover Freelander Will Be Assembled In India
According to sources, Tata Motors will start its trial productions from December and has invested Rs.150 crore for this assembly process. The factory will produce 20 cars per month. Based on the expenditures of assembling Freeldander in this plant, Tata Motors will plan to assemble other cars of Land Rover stable too. According to experts, assembling the LR cars will have impact on profitability of the car, but that doesn't mean the car's price would be reduced.
So, far this is the first time that JLR is having an assembly plant outside UK and also, the company is skeptical if it would use the assembled cars for export market. But, experts feel that, considering greater demand in China, it would not be profitable for the company to set its assembly plant in India. On the other hand the huge difference between duty on imported CBU is 110% as against imported CKU is 40%, therefore this will make Tata Motors achieve cost benefits.
BMW X3 and Audi Q5 are the competitors for Land Rover Free lander, which is priced at Rs. 34.69 lakh(on road price, Mumbai). So far, 242 Land Rover cars have been sold out from Mumbai's JLR outlet during 2009-2010. But the firm has not shared the monthly sales data for the domestic market.
Tata Motors acquired JLR in 2008 and is reaping good profits as the cars are sold in increasing numbers after the acquisition across the globe. There are totally 4 JLR outlets in India, and recently Jaguar XJ was launched in India.
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