JLR buyers hit the brakes in India, wait for more clarity on FTA with UK
Agencies
Synopsis
Jaguar Land Rover executives convened in Mumbai to address a sales slowdown in India following the UK-India FTA announcement. Dealers report customers are delaying purchases, anticipating price reductions, though locally assembled models may not see significant changes. Despite recent record sales and strong growth, uncertainty surrounding the FTA's details is impacting buyer behavior.
Mumbai: Stung by an abrupt slowdown in sales in the Indian market since the India-UK free trade agreement, top Jaguar Land Rover (JLR) executives met at Bombay House on Monday to discuss the developments, a day prior to the company's quarterly results, people familiar with the matter said.
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Dealers say while luxury car buyers are generally not price sensitive as mass market consumers, absence of details on the FTA agreement including clarity on timelines or pricing is leading to the current uncertainty. "Customers have put a hold on purchases. Many are also not doing the full and final settlement, hoping to see some reduction in prices soon," said a JLR dealer.
Another dealer however, pointed out that Land Rover models may not see a significant price impact as most of the models are locally assembled such as the Land Rover Discovery, Range Rover Evoque, and Range Rover Velar. "We wouldn't be able to provide any additional comment at the moment, as it's a silent period for us," a spokesperson for JLR India said, responding to an email query.
Sales at JLR India have been on an upswing in the recent past. The automaker posted record annual sales in its 17-year operations in the country. It clocked retail sales of 6,183 units in FY25, a 40% growth. Wholesale volumes rose 39% to 6,266 vehicles. JLR India's annual retail sales more than doubled in the last two years.
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The strong momentum continued in the March quarter. Retail sales and wholesales rose 110% and 118% on-year to 1,793 and 1,710 vehicles, respectively. This was largely driven by strong demand for Defender and Range Rover SUVs.
In FY25, Defender was the highest-selling model in its portfolio, with growth of 90%, followed by the locally-assembled Range Rover and Range Rover Sport models at 72% and 42% respectively.
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The UK-India FTA aims to cut import duties on British luxury cars such as Rolls-Royce, Aston Martin, and Jaguar Land Rover-from the current 100% to 10% over five years.
