Clouds hang over the localization of Rover
Jaguar Land Rover, which is currently in the hands of Tata Motors in India, may see the assembling in the country itself, according to unreliable sources. The move is slated for the end of this year and the domestic assembled Freelander cars will see the rolling down during the Q2 of 2011, it is learnt. As the trial production is set for this December, the company’s Pimpri unit in Pune will take care of this assembling job. The same unit was earlier utilized by Mercedes Benz India which has shifted its plant to Chakan near Pune. Tata’s investment for this assembling unit would be around Rs150 crore and the outcome will decide the methodology for other models too. At the same time it is not decided to utilize this plant for making vehicles meant for export. However, the move fell to the criticism of the auto industry which said that the installing assembling plant in India could not be better proposal when China remains the largest market with higher sale than India. Tata has not created any significant sale figure with this JLR as there were just 242 units could be sold in 2009-10. Priced at Rs34.69 lakhs, Freelander counters the likes of Audi Q5 and BMW X3. Tata sees the other side of the assignment as it could benefit largely on financial terms by saving a lot from 110% tax levied for imported CBUs. The CKU face only 40% levy. However, there is no dimension on the pricing due to its saving in the tax. Tata has a motif behind this proposal as it likes to have domestic sourcing to mean the quality.