“Silly” taxes keeping Tata from Manufacturing JLR cars in India

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Ratan Tata has, Tata Group Chief, recently said that “silly taxes” will make assembling Jaguar Land Rover cars in India costlier than importing them.

Tata Motors is busy installing a plant in China and there also are possibilities that the automaker might come up with a facility at Saudi Arabia. However, the car maker has no such plans for India and Ratan Tata has said,”India is still making it somewhat difficult for us to offer it,” he told PTI when asked as to when Jaguar and Land Rover could be manufactured in India.  They are being assembled now (in India). Unfortunately, today if we were to manufacture here, it would cost more than the assembled one.”

Talking about the complications in producing these cars in India, Tata has said, “Because we do not have scale of manufacturing here, we are selling about a 1,000 Jaguars a year and you would need to be at least four to five times that in order to justify the investment that you would make …

“… so unfortunately, the assembly here is turning out to be more costly than importing the cars because of some silly taxes that they have been imposed on companies.”

Tata said that the “government should really look at doing things to incentivise people to bring more investment to India so that it becomes a base of exports, which unfortunately is not happening and China is doing that.”

“We are building a plant in China which will export to different parts of the world. Even Saudi Arabia is asking us to come there and India is still making it somewhat difficult for us to offer it,” he added.


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