Vastav Prajapati’s Post

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Senior Account Officer 1 @KMK Ventures | CFA Level-1 Cleared | MBA - Finance

>𝐆𝐫𝐞𝐚𝐭 𝐦𝐨𝐯𝐞 𝐟𝐨𝐫 𝐈𝐧𝐝𝐢𝐚𝐧 𝐑𝐚𝐧𝐠𝐞𝐫 𝐑𝐨𝐯𝐞𝐫 𝐥𝐨𝐯𝐞𝐫𝐬! India will be the first country since 1970 to make flagship Ranger Rover and Range Rover Sport cars outside UK. The move comes after the retail sales in India grew by 81%. JLR India has been making Range Rover Velar, Evoque, Jaguar F-PACE, and Discovery Sport at its Pune facility already. - How will it happen? JLR India will be importing CKD (completely knocked down) units from UK and assembling them in India. CKD units are unassembled parts of the car which are assembled in the country which imports them. - What impact will this have? 1. This step by the JLR India will reduce the price of the respective cars by 18-22%, which according to Rajan Amba, Managing Director of JLR India will help them capture the market which they were previously not able to. 2. The waiting period for the models will also come down from 7-9 months also. This bodes well for both company and the customers. The move is a part of company's goal of doubling its sales in next three years in India. It would be interesting to see how this will impact Tata Motors' revenue and and margins as around 65% revenue Tata generates comes from JLR. P.S. - This is my 4th day covering auto sector and passenger vehicle segment in particular. #india #finance #equitymarkets

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