PrancingHorse

Should Jaguar go CKD in India with the XJ 2.0 litre Ecoboost ?

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The news is just in that Jaguar is launching a 2.0 litre EcoBoost petrol variant of its XJ luxo barge in India. Power will be around 237 bhp and price is said to be Rs. 1.16 crore ex Showroom Delhi which makes it 14 lakhs cheaper than the 3.0 V6

I think Jaguar should go the CKD way with this XJ variant because it still costs more than its rivals. Going CKD will bring down the price further and should be awesome if it came under the 1 crore mark Ex showroom.

JLR already assembles the Freelander and XF 2.2 at Pune so this would be a good idea.

Opinions?

post-7692-0-39527800-1373697079.jpg

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@PrancingHorse

After the initial success Jaguar has had in Indian market and the Long waiting list they have gathered in India they have somewhere lost the plot. Jaguar sold because they offered more for less. They had launched XJ 3.0D at 73 lakhs and look at its pricing now.

Some XJ varients are currently priced ridiculously closer to Bentley, even maserati's are cheaper ! I see them going down from here on.

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I Believe the entire Jag line up should go the CKD way why only the 2L i4 ?

:)

They had launched XJ 3.0D at 73 lakhs and look at its pricing now.

Those were the times my friend when i was hoping to own one, but now it is a distant dream.

Even the Pre-Owned XJ's are now cribbing to give a good price :(

Edited by F30

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Lets not forget, the current high prices are due to the CBU duties etc which are raised recently. ( correct me if i am wrong )

But I seriously couldnt digest the prices they are asking for the F-Type in India.

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Lets not forget, the current high prices are due to the CBU duties etc which are raised recently. ( correct me if i am wrong )

Nope even with rupee falling and increase in import duty it cannot jump from 73 lakhs to 1.10 cr. prices of S class rose by 2 lakhs only

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The S class is already assembled in India so hike in CBU pricing is not valid for it as its a CKD. Also, Jaguar has started with XF assembly here already. The XJ is an aluminium body chassie and its tough to get that finish and CKD line-up in India, accentuate that with lesser unit sales; its a no brainer not to bring XJ as a CKD. Why is Jaguar even launching the 2.0 ecoboost here? I would never pay 1.0 crore plus for a 2.0lt engine (its like a mental block- bragging right) even if it is a technological master-piece. People buying expensive cars don't really care about FE.

Also CBU is raised from 75% to 100% in this years budget.

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well the 7 series has an all aluminium chassie and is assembled in India.

Let me show you how pricing works. Imported few cars myself hence know a little bit.

XKR V8 supercharged coupe costs 1.50 crs Mumbai.

if i import it from UK with special export price i.e tax free it costs 56,500 = 52,00,000 ( ~ pound 92 rs)

add 100% duty 52,00,00 = 1,04,00,000 + frieght and insurance 2,00,000 = 1,06,00,000 is your landing cost in bombay for a new XKR V8 ! see the difference in pricing ?

Even if the car is ARAI homologed you can import it by paying penalty.

post-1746-0-53713500-1373957441_thumb.pn

Jaguar themselves have an export pricing department.

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Here we go again :D

F-type V6-s is 1.40 cr

US it retails for 91,000 $ including duty. In our scenario since we are importing we get more 8000 $ off from taxes. price comes to 82,000$ ish = 50,00,000 + 50,00,000 duty + 3 lakhs handling and insurance = 1,03,00,000 ! jag earns approx 30 lakhs per car when we remove overhead expensis and dealers cut!

Even after the killer duties these guys are milking us !!

I really wish autocar or someone would really take this matter to these companies. :(post-1746-0-16743800-1373972671_thumb.pn

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I feel it would a good market strategy if JLR can make all their makes CBU atleast till they dont have factory here (God knows if there will be any in the future).

And it is really a matter of milking the Great Indian Buyers :) JLR was first saved by Tata Motors (and TM sunk with the load of this) and now, JLR is getting long term "Save" by each Indian customer.

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SO for CBU XJ 1.16 crore = 6 lakhs shipping/insurance + 55lakhs duty + 55 lakhs ex-showroom

For CKD XJ 55lakhs + 16.5 lakhs (30% duty) + 5 lakhs shipping parts for CKD etc = 77 lakhs approx

13 million euros for CKD investment in India - 5 million euros(Tata-merc facility already being used) - 3 million euros (since jaguar has already got most tools/equipment as its assembling XF) = 5 million euros = 5000000 x 77 = Rs 385000000 (40 crore approx)

Now consider sales of XJ if CKD is implemented about 500 units pa (at max) 77lakhs x 400 = Rs 3080000000

Were as in CBU sales will be around 250 pa (optimistic) 1.16 x 250 =Rs 2900000000

The difference is really not much and if you consider the additional investment the company is making 40cr which will be recovered in 3-4 years depending on sales . I know more cars there as CKD it will recover it faster but for any new model for CKD it costs about 30-40crore as additional investment (for a luxury car).[unlike if you consider that swift and dzire are assembled then their equipment is common to 97%]

Also since some of the interiors are a bits handcrafted one needs skilled labour too at the plant

Ps - I considered same profit level with CBU and CKD for Jaguar but the CKD profit can be increased by as much as twice. Thus investment car with break-even in 2 years .

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Great info everyone.

So they really make money even after these high duties.

Also they are themselves to be blamed if their cars dont sell that much owing to these increased costs, least they could do away with the MILKING part of it.

I also heard that in the next month Audi is increasing prices in the range of 70k and 2L because of the falling rupee on its range of products.

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yes i agree with you. CKD makes much for sense.

Also remember a Jaguar at say 83ish would also takes away 7 series and A8 customers. The only tough competition it really has is the S class.

@ librankur everybody seems to grab the opportunity for the falling rupee. Yes they should actually change the price because rupee is depricitaing. But as a customer i would like to know at what exchange rate my car was imported :lol:

Edited by sarabjeet

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Its not practical / feasible to bring all the luxury cars CKD (For all the manufacturer) in India. In the recent years the top end market has matured to certain extent thats why some manufacturer have started CKD route in India.

To be honest everybody is here to do business and make money (more the better) Its a matter of whether a customer is ready to pay X amount for a Car and whether a manufacturer is able to sell Y no of cars as he has planned out at that price. if both these ends are meeting than they would continue with the CBU route as it is more viable from their business case point of view.

While i am not advocating the so called 'Milking' or charging more premium on the luxury cars, even cars Swift, I 20, Duster, Innova are comparatively over priced for the amount of equipment they offer, but they are still selling

Coming back to Jaguar going CKD, i feel once they have started on some models, as per the market response they will look for extending it to other models as well

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