Jaguar starts XF assembly in India image

Jaguar Land Rover, Tata Motors luxury-car unit, has started assembling two variants of its Jaguar XF sedan in India.

According to the Wall Street Journal, the move will allow the company to sell the model at cheaper prices to local customers. Locally assembled vehicles attract lower taxes in India, compared with fully built imported vehicles. Reducing its vehicle prices by building them locally will allow JLR to take on rivals such as Daimler, BMW and Audi, which assemble some of their models in India.

Jaguar Land Rover has begun assembling the XF sedan with a 3.0-liter diesel engine at its plant Pune city, western India, spokesman Del Sehmar said Monday. JRL previously imported the 3.0-liter model from the UK as completely built units. The company has also started building the 2.2-liter diesel version of the XF at the same plant.

The Jaguar XF 2.2-liter diesel is priced at 4.5 million rupees ($83,800) at Mumbai showrooms, while the 3.0-liter XF starts at 4.1 million rupees ($98,850), down from 5.8 million rupees that it cost before local assembly. Jaguar Land Rover India also assembles the Land Rover Freelander 2 SUV in Pune, where the plant was inaugurated in May 2011.