JLR looks to narrow gap with BMW in India on local Defender assembly

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The Economic Times daily newspaper is available online now. Read Today's Paper JLR looks to narrow gap with BMW in India on local Defender assembly and price cuts of up to Rs 34 lakhBy Shally Mohile, ET BureauLast Updated: Oct 27, 2026, 11:54:00 PM ISTSynopsis

Jaguar Land Rover is focusing on local assembly of the Land Rover Defender to increase its market presence. The company has reduced prices of certain Defender variants by significantly lowering their costs to attract more buyers. Despite being third in luxury car sales, JLR expects to close the gap with BMW through these changes. Amba anticipates a 20% increase in annual sales volume due to local assembly benefits.

Mumbai: Jaguar Land Rover (JLR) expects to narrow the gap with India's second-largest luxury carmaker BMW, banking on local assembly of its best-selling Land Rover Defender SUV to drive volumes after slashing prices of select variants by up to ₹34 lakh, said Rajan Amba, MD of JLR's local unit.

"We are a strong number 3," Amba said. "I think we will be climbing up the ladder in terms of bridging the gap between two and three, but it's still a long way to go," Amba told ET.

JLR India, which retailed 6,031 vehicles in FY26, down 2%, is the third-largest luxury carmaker in the country, behind Mercedes-Benz India and BMW India. The two German carmakers sold 19,363 and 17,301 vehicles, respectively, during the year.

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The Defender, Range Rover and Range Rover Sport together account for 88-90% of JLR sales in India. Amba expects the local assembly of the Defender to boost annual volumes by 20%. On an average, JLR sells around 3,000 units of the Defender every year.

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The 3.0-litre petrol and diesel X-Dynamic HSE variants of the Defender are now priced at ₹1.18 crore, compared to ₹1.52 crore earlier, a reduction of about 22%. The 2.0-litre petrol X-Dynamic HSE variant is priced at ₹99 lakh, down from ₹1.135 crore. India will be the second country after Slovakia where the Defender is being assembled locally. The price cuts are expected to bring the SUV within reach of a wider pool of buyers, including those who had previously found it beyond their budgets, Amba said.

JLR has an installed annual production capacity of 12,000 units in India, he said. Having sufficient local manufacturing reflects the company's confidence in India despite the market's relatively small contribution to its global volumes.

"Yes, smaller volumes, but we're a high growth market," said Amba. "And we see a lot more potential in this market." Amba expects India's luxury car market to grow at least 15% this calendar year. However, uncertainty over potential price reductions under trade agreements is weighing on purchase decisions, with some customers deferring purchases amid speculation over future prices.

Recalling the experience ahead of the implementation of the UK-India free trade agreement (FTA), Amba said repeated announcements and speculation about price changes had affected customer sentiment and sales.
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