Ratan Tata, Chairman of Tata Motors, has made it clear that rules and regulations pertaining to taxes in India, will have a bad influence on the manufacturing of Jaguar and Land Rover cars in the country. Mr Tata stated that due to ‘silly taxes’ manufacturing JLR cars in the country will tend to be costlier than imports for the same.
Currently these vehicles are assembled in the country. Moreover, due to a reduced scale of manufacturing as compared to outside facilities, JLR plant in India manages to produce 1,000 Jaguar vehicles each year, which is not sufficient to justify an investment relating to manufacturing these vehicles.
Ratan Tata who will be retiring on 28th of December 2012, also said that the brand is building a plant in China and will be exporting to other countries from that location. Saudi Arabia too wants JLR. He said that the government should provide suitable policies which will enable one to invest in the Indian economy without being pressurized into paying ‘silly taxes’ for monetary gains towards the economy.