One way Jaguar Land Rover intends to grow its Indian business is by increasing the localization of its products. The company has confirmed that it will build the advanced Ingenium engines in India.
JLR has an assembly plant in India in Pune where it commenced operations by assembling the Land Rover Freelander 2 from CKD kits in May 2011. Today, it welds and screws together six models: Land Rover Discovery Sport, Range Rover Evoque, Jaguar XE, Jaguar XF, Jaguar XJ and Jaguar F-Pace.
The FY2018-19 budget made locally assembled vehicles costlier with a 5% hike in the customs duty on CKD imports of cars, and a 7.5% hike in the customs duty on the import of parts. Still, JLR is keen on increasing localization to reduce costs.
Ingenium engines are the most advanced JLR has deployed on its cars. Replacing the older Ford units, they are engineered to offer performance and refinement while meeting the most stringent global emissions regulations. These engines are currently available in only the 2.0-litre displacement.
Offering a maximum output ranging from 150 PS to 300 PS, these engines power nearly the complete JLR line-up. From Land Rover's portfolio, the Land Rover Discovery Sport, Land Rover Discovery, Range Rover Evoque and Range Rover Velar use these engines. From the Jaguar stable, the Jaguar XE, Jaguar XF, Jaguar E-Pace Jaguar F-Pace and Jaguar F-Type are the beneficiaries. A number of JLR models in India are already available with the Ingenium engines. Just last month, the Land Rover Discovery Sport and Range Rover Evoque were announced with the 240 PS 2.0-litre Ingenium petrol.
Local manufacturing of Ingenium engines should help Jaguar Land Rover reduce car prices in the long run. The Jaguar XE, priced from INR 38.18 lakh (ex-showroom), is currently the most affordable model in its portfolio.