Why Indian buyers are suddenly delaying Jaguar Land Rover purchases
What's the story
Jaguar Land Rover (JLR) is witnessing a slowdown in its Indian sales since the announcement of the UK-India Free Trade Agreement (FTA). The company's top brass gathered at Bombay House to deliberate over the unexpected development. Dealers have said that customers are delaying their purchases, hoping for price cuts due to the FTA.
Market impact
Uncertainty over FTA details affecting buyer behavior
The uncertainty over the details of the FTA, such as timelines and pricing, is affecting buyer behavior. A JLR dealer said, "Customers have put a hold on purchases. Many are also not doing the full and final settlement, hoping to see some reduction in prices soon." However, another dealer noted that several models—including Land Rover Discovery, Range Rover Evoque, and Range Rover Velar—may not be much affected by price changes as they are locally assembled.
Sales performance
JLR India recently reported record annual sales
JLR India recently reported record annual sales in its 17-year history in the country. The company posted retail sales of 6,183 units in FY25, registering a 40% growth. Wholesale volumes also increased by 39%, amounting to a total of 6,266 vehicles. This spike was primarily fueled by robust demand for Defender and Range Rover SUVs.
Trade agreement
UK's FTA aims to reduce import duties on luxury cars
The UK-India FTA seeks to slash import duties on British luxury cars, including those from Jaguar Land Rover, from the existing 100% to 10% over five years. The trade deal is likely to have a major influence on the pricing and sales of these vehicles in India. However, as there's no clarity on the deal's details, many potential buyers are now in a wait-and-watch mode.