JLR India Expects Double Digit Growth In FY 2017-18
Tata Motors owned luxury car maker Jaguar Land Rover (JLR) says that after a timid growth in the last financial year, it is expecting a double digit growth in fiscal 2017-18. The British car maker said that goods and services tax (GST) will bring positivity in the sector.
Rohit Suri, president of Jaguar Land Rover India said, “Last year many things happened which impacted the growth of luxury car market. Going forward this year, those things are behind. The year started with a good note as the expected GST rates are favouring the industry.”
Luxury cars are expected to attract 28 per cent GST and a cess capped at 13 per cent. The final rate will be 5-8 per cent lower than the current applied rates.
“This year we are hoping, growth will be better than the last year. We are looking at double digit growth,” Suri said.
Apart from GST, the car maker will be banking on new launches to boost sales. JLR has announced as much as 10 launches this year, significant ones being the new Discovery and Velar.
JLR is also working on expanding its network. The company on Saturday (3 June) inaugurated one of its largest showrooms in the country in New Delhi. Suri said that the company will add two-three more showrooms by the end of this year. At present, JLR has 25 outlets in the country.
In order to fight uncertainties like diesel ban, which seriously impacted the luxury car market, JLR wants to ensure that its product line-up is available in petrol and well as diesel options.
“Suddenly if something like diesel ban comes again, we should not be suddenly out of the market. We want to ensure we are present in both options. There is a demand for diesel engine. If the demand changes, we are prepared for that,” Suri said.
Indulging in experiential and promotional activities to fortify brand image is another area where the company is investing a lot.
The company also expects a pick-up in sales in tier-II cities. “We have already started taking JLR brand in tier-II cities So far we have opened showrooms in Lucknow, Aurangabad, Raipur and Mangalore. Though demand is not as strong as metro cities, but the good thing is that demand is picking up there.”
For JLR, 70-80 per cent of its total sales come from metro cities, with Delhi/NCR, Mumbai, and Bengaluru being its biggest markets.
However, unavailability of an entry level SUV under its kitty impacts JLR volumes in the luxury space. A major portion of sales for its peers Mercedes-Benz, BMW and Audi comes from entry level SUVs which are priced between Rs 30-40 lakh.
“There is definitely a demand in that segment. Right now we don’t have any product catering to that segment and once JLR decides on the same, India will be a big market for it.” At present, no decision has been taken.
When asked about whether the company will bring electric vehicle in India or not, Suri said they are keen on bringing electric vehicles in the country, given there is a firm policy and infrastructure to support EVs. JLR is launching its first electric car, the Jaguar I-Pace, in the global market next year.
