Paving the way for future non-CKD model introductions, boost for JLR’s electric ambitions in India as UK-India trade deal lowers EV import duties.
Jaguar Land Rover (JLR) is set to benefit from the newly agreed free trade agreement (FTA) between India and the UK, with the deal opening doors for the smoother introduction of its battery electric vehicles (BEVs) in the Indian market.
However, according to a Financial Express report, Indian buyers should not expect a drastic drop in prices for JLR’s luxury models, as most of them are already assembled locally in Pune.
JLR currently assembles nearly all Land Rover models in India, including the Range Rover, Range Rover Sport, Velar, Evoque, and Discovery Sport. This local assembly shields them from high import duties, which will remain unchanged for Completely Knocked Down (CKD) kits under the new trade pact.
Speaking after the company’s financial results, Richard Molyneux, JLR’s Chief Financial Officer, said the FTA will primarily benefit upcoming electric models. He noted that although the current duty structure for existing operations will remain the same, the FTA will support the introduction of future BEVs that are not included in their CKD assembly plans.
Jaguar’s shift towards an all-electric lineup begins this year with the global rollout of the Type 00 GT. The electric Range Rover is expected to follow in 2025, forming part of a larger transition to EVs. This aligns with the firm’s recent global manufacturing overhaul, which included ending production of several Jaguar models at its UK and Austrian plants.
The FTA could significantly reduce import duties on fully built electric vehicles. Cars priced above $40,000 may see duty rates cut from 110% to 50%, while vehicles under that price could face just 10% duty, down from 70%. This will put JLR’s BEVs in direct competition with models from US-based Tesla, which has yet to reveal its India strategy.
India, though smaller in size compared to global markets, has emerged as a fast-growing luxury car market. JLR’s sales in the country rose by 40% in FY25, making it the third-largest luxury car brand after Mercedes-Benz and BMW.
The company also plans to locally assemble the Defender in India, further expanding its portfolio of domestically built vehicles.
