Luxury carmaker expands its India network to 25 outlets, also announces price cuts of up to 12 percent ahead of GST implementation.
03 Jun 2017 | 8534 Views | By Mayank Dhingra
The Tata Motors-owned Jaguar Land Rover has expanded its dealer network in India with the opening up of a new showroom in the Motinagar industrial area of New Delhi.
of New Delhi. The luxury carmaker has tied up with the AMP Group to set up a 3S (Sales, Service ...
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The Tata Motors-owned Jaguar Land Rover has expanded its dealer network in India with the opening up of a new showroom in the Motinagar industrial area of New Delhi.
of New Delhi. The luxury carmaker has tied up with the AMP Group to set up a 3S (Sales, Service and Spares) facility, spread across 80,000 square feet. The outlet is AMP's third in the NCR region, after its first two being operational in Gurugram and Mathura Road.
The showroom display area is across two floors, with a total display capacity of 16 cars, including both Jaguar and Land Rover brands. A sales area is also designated to display used cars on offer, under the pre-owned 'Approved' division of JLR.
JLR now boasts of a dealership count of 25 outlets, across 23 cities in the country. Speaking at the launch in New Delhi today, Rohit Suri, managing director, Jaguar Land Rover India, said, " The region of northern India is of prime importance to the company's operations in the market, bringing in substantial volumes and being a significant growth driver. The new facility in Delhi would only aid the company's reach to its target customers and play a vital role in increasing its sales."
JLR India cuts prices ahead of GST
The implementation of Goods & Services Tax (GST) is still a month away but luxury carmakers have already begun announcing consumer benefits. A few days ago, JLR India announced a price reduction up to 12 percent.
JLR currently produces five models in India – three Jaguar models XE, XF and XJ and two Land Rover models, Discovery Sport and Range Rover Evoque. As per the company, benefits to customers on select stocks will be passed in advance of the GST implementation. Benefits will vary from state to state and will be in the range of Rs 200,000 to Rs 570,000 on the Jaguar XE and will go up to Rs 400,000 and through to Rs 10.9 lakh on the Jaguar XJ. On the Discovery Sport and Range Rover Evoque, the benefits vary from Rs 330,000 to Rs 750,000. The revised prices come into effect immediately.
“Implementation of GST is a historical moment for India which will not only benefit consumers but is also expected to make the whole tax regime simpler and more transparent. We are pleased to proactively pass on benefits linked to the expected price reduction to our customers with immediate effect,” said Rohit Suri, MD, Jaguar Land Rover India.
GST, the single indirect tax for the whole country, finalised tax rates for over 1,200 items on May 19, 2017, with SUV and luxury cars being one of the major gainers benefiting from the new rates. The SUV segment which has seen good growth of 29.91 percent in FY2017 is currently subjected to a heavy tax structure of around 55 percent (for SUVs and large cars with engines bigger than 1,500cc). GST will effectively reduce this to 43 percent – 28 percent GST plus 15 percent cess – and this will act as a huge fillip to SUV as well as luxury car sales.
Meanwhile, JLR’s rivals Mercedes-Benz India, Audi India and BMW India have also announced price reductions as a result of the GST tax reduction. With sizeable price reductions to be had and turning into sales drivers, expect the luxury car segment to notch double-digit growth in FY2018.
Also read: JLR India lines up 10 products for FY2018. Interview with MD, Rohit Suri