No Manufacturing Plant for JLR in India
Tata Group chief, Ratan Tata has ruled out any possibility of manufacturing vehicles for the Jaguar Land Rover Group due to some taxes that make it more expensive to manufacture the cars than import them. Tata Motors is currently setting up a plant in China and is also in talks with Saudi Arabia about setting up operations there.
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Ratan Tata 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."
He also added 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."
Source - ET
