Jaguar Industry Attractiveness
Jaguar Land Rover has undergone a period of unparalleled growth since 2009.For the very first time since it entered the home market of its parent, Tata Motors Ltd, JLR India saw its sales declinewhile most other automobile manufacturers saw sales advance, although at a slower pace when compared to the previous year, that is 2013.
In line with its global plans, JLR in India phased out the Freelander 2 to make way for the Discovery Sport, which was due for launch late last year (2014). JLR dealers in India attribute the slowdown to the gradual ramp-up in production of the Range Rover Evoque at the company’s local assembly unit near Pune and the discontinuation of the Land Rover Freelander 2 which was actually …show more content…
This was a time when India’s luxury car market was, and still is, dominated by the big three German brands: Audi, Mercedes-Benz (from Daimler) and BMW. Reason: All three have had at least a five-year head start in India, either through well-established distribution networks or assembly units. JLR India, says that customers were lining up to place orders even as the company was setting up its first showroom at Ceejay House in Worli, Mumbai. By the time the showroom opened, all six imported cars had been booked and sold despite the fact that a luxury car import is accompanied by a hefty tax. (According to analysts, global automakers face import duties from anywhere between 60 and 200 percent depending on the price of the car.)
To be taken seriously by its competition and potential consumers however, JLR had to assemble its cars locally. And it started doing just that in the year 2011. It recorded a 3,100 percent jump in sales in India over a four-year period, from 2009 to 2013: In the first year (from July to December), JLR sold 91 units. In 2013, the company sold 2,913 cars. Market leader Audi, which sold 10,002 cars in the same year, recorded a 500 percent growth between 2009 and 2013, followed by Mercedes (177 percent) and BMW (100 percent). The base effect was in full play for JLR—as was the brand