Tata Motors announced that its British brand, Jaguar Land Rover (JLR), won’t be taking advantage of India’s new electric vehicle policy at this time. The policy, introduced in March, aims to attract global EV makers like Tesla by offering lower import duties for companies that set up manufacturing units in India.
New EV Policy Highlights:
- Allows limited car imports at a 15% customs duty.
- Applies to vehicles costing $35,000 and above.
- Requires a minimum investment of $500 million (₹4,150 crore).
- Manufacturing facilities must be operational within three years.
- Companies must achieve 25% domestic value addition within three years and 50% within five years.
Tata Motors Group CFO PB Balaji’s Statement:
- The policy isn’t suitable for JLR at the moment.
- JLR is seeing strong growth in India, especially with localized manufacturing of Range Rover models.
- JLR prefers CKD (completely knocked down) manufacturing for now, which benefits from the same 15% customs duty without additional obligations.
Current JLR Business in India:
- Strong growth and high demand for localized Range Rover models.
- JLR may consider the new policy in the future if it aligns with their plans.
- JLR’s production may face challenges in the upcoming quarters due to summer shutdowns and supply issues.
In the recent earnings announcement, Tata Motors mentioned JLR’s wholesale volumes were up 5% year-on-year, and retail sales grew 9% year-on-year in the April-June period.
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