The India-United Kingdom free trade agreement may not have come into force, but companies have started to give its benefit to customers in anticipation of the deal being implemented soon.
The latest among such companies is the Tata Group-owned Jaguar Land Rover (JLR), which has slashed the prices of its UK-built models in the Indian market.
The company announced a reduction of up to Rs 75 lakh on its premium models manufactured in the United Kingdom.
Two of the company’s models will be the main beneficiaries of the soon-to-be implemented free trade agreement.
The company has cut the price of the Range Rover SV by Rs 75 lakh for the Indian market. The model will now be available at Rs 3.50 crore, which earlier cost Rs 4.25 crore.
Also, the Range Rover SV will now have SV Ultra Metallic paint options in gloss and satin finishes as standard.
Another JLR model to see a price cut will be the Range Rover Sport SV.
It will now cost Rs 2.35 crore compared to Rs 2.75 crore earlier. This translates to a reduction of Rs 40 lakh. However, the reductions have been made to the ex-showroom price of the models.
The reduced pricing is effective with immediate effect, the company said.
“In anticipation of the India-UK FTA being implemented, we are pleased to extend its benefits to our clients. The updated pricing of Range Rover SV and Range Rover Sport SV underscores our customer-first approach and commitment to building long-term relationships with our clients,” said Rajan Amba, Managing Director, JLR India.
“We are confident that this FTA will allow more clients to experience the highly desirable and aspirational SV portfolio, and further strengthen the JLR India growth story,” Amba further added.
Import of completely built units of passenger vehicles, which cost up to $40,000, attracts an import duty of 7 percent. Vehicles priced above the $40,000 mark face an additional 40 percent tax in the form of Agriculture Infrastructure and Development Cess.
In the India-UK FTA, this tax is slashed to just 30 percent in the first year of implementation of the deal.
The FTA is expected to come into force soon.
