Jaguar Land Rover's Indian Sales Hit by UK-India FTA Uncertainty

Jaguar Land Rover (JLR) is experiencing a slowdown in its Indian market sales, attributed to the ongoing uncertainty surrounding the India-UK free trade agreement (FTA). Top executives convened at Bombay House to deliberate on the situation ahead of the company's quarterly results announcement.

Despite the current challenges, JLR India has shown remarkable growth in recent years, achieving record sales in FY25 with a 40% year-on-year increase in retail sales, totaling 6,183 units. Wholesale volumes also saw a significant rise of 39% to 6,266 vehicles.

Impressive Growth Amidst Challenges

The company's sales have more than doubled over the past two years, with the March quarter witnessing a 110% surge in retail sales and a 118% jump in wholesales. However, the lack of clarity on the FTA has led to hesitancy among potential luxury car buyers, with many postponing their purchases in anticipation of possible price reductions.

Local Assembly Mitigates Price Fluctuations

Land Rover models such as the Discovery, Range Rover Evoque, and Velar, which are largely assembled locally, may not experience significant price changes, providing some stability in the current uncertain climate.

Key Models Drive Growth

The Defender and Range Rover SUVs have been pivotal to JLR's success, with the Defender leading as the highest-selling model, followed by the locally assembled Range Rover and Range Rover Sport models.

The anticipated UK-India FTA is expected to gradually reduce import duties on British luxury cars from 100% to 10% over five years, potentially reshaping the market landscape.