Jaguar and Land Rover (JLR) – the luxury car making arm of Tata Motors — will also be focusing on the lower end of the luxury car segment in order to increase volumes and market share in India. The JLR which is the fourth largest luxury car manufacturer in the country, is looking to consolidate its position in the domestic market by entering tier 2 and tier 3 cities and focus on improving after sales services.
“If it makes sense we will look at lower segments in the luxury car market. In fact, with the launch of Jaguar XE we have tried to enter the lower segments compared to where we were. We have started to tap the customers in the lower end,” said Rohit Suri president Land Rover India.
The UK-based company has been trying to consolidate its position in the market but lack of products in the entry level segment is thwarting its volume in the country. Competitors like Mercedes and Audi have offerings in this segment.
Currently, JLR commands and market share of 9% in the luxury car segment and the company registered a growth of around 45% in the January – March quarter of the 2016 on the back of good demand for vehicles like the Discovery Sport and Jaguar XE.
“We have managed to acquire 9% market share in the premium segment despite not having a product in the lower end segments like hatchbacks. We have been able to attract customers at the higher end given the strong brand we are,” added Suri.
The company will look to expand its presence in tier 2 and tier 3 cities like Nagpur and Raipur and increase the total number of dealerships to 26 from the current 23 across the country.
After sales is also another focus area for the company and recently it had established a huge parts distribution system near Mumbai. It is also focusing on training executives employed in the JLR dealerships.
The ban on the registration of diesel vehicle has by and large impacted the volumes of most of the luxury car makers. According to Suri, the luxury car industry has been impacted by the diesel ban but can register double digit growth in the current year.
At present, Jaguar and Land Rover assemble five cars which includes jaguar XE, XF, XJ, Discovery Sport and Range Rover Evoke. On Thursday the company also launched the third derivative of XE known as the Prestige.