India-UK FTA To Boost JLR’s Imported Car Sales And Double India Volumes

India’s free trade agreement (FTA) with the UK will allow Jaguar Land Rover (JLR) to offer more imported models in India, helping it double annual sales in three years, a senior executive said.

Sales at JLR India rose sharply in FY25. The company posted a 40% jump in retail sales to 6,183 units—the highest in its 17-year history in the country. Wholesale volumes increased by 39% to 6,266 units. JLR overtook Audi to become India’s third-largest luxury car brand, behind Mercedes-Benz and BMW.

“We are excited about the FTA. It will bring more focus on the market,” said Lennard Hoornik, chief commercial officer, JLR. “We want to invest in India more than ever before and double our retail network. We are making record marketing investments in India,” he added, without giving details.

India currently levies 110% duty on fully-built imported cars. Under the FTA, duties on UK-made models will reduce gradually over the next few years.

“Any reduction of trade obstruction is very good,” said Hoornik. Except for the Defender SUV, which comes from Europe and will be locally assembled later, all other JLR models sold in India are already assembled locally, he noted.

JLR Bets Big on EVs Despite Global Slowdown

Speaking to Indian media at JLR’s UK headquarters, Hoornik said the company will launch eight models in the next 12–18 months. These will include new and refreshed models, the Jaguar Type 00 (its first EV under the 2021 Reimagine Strategy), the Range Rover electric SUV, and special editions.

While global carmakers slow down EV plans, JLR remains committed. “We focus on flexible powertrains. We aren’t over-investing in EVs or under-investing in combustion engines. Forecasting customer demand remains the toughest challenge,” Hoornik said.

Imported Models on Hold Until FTA Execution

Meanwhile, Rajan Amba, managing director, JLR India, said the company will delay new imports until the FTA is fully rolled out.

JLR India is awaiting clarity on the extent of duty cuts and the annual quota of low-duty imports.

“The FTA favours imported models, but we will delay decisions until execution. We don’t plan to localise more models,” said Amba. Since the Defender comes from Europe, it will not benefit from the UK deal.

JLR India currently has an order book of 4,000 vehicles. Amba expects annual sales to rise to between 15,000 and 18,000 units in the next three years.

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