Jaguar Launches Car Production in India

Tata Motors Ltd.'s Jaguar Land Rover division has started assembling Jaguar XF sedans for the local market at the luxury unit's plant in Pune, India.

JLR opened the factory in May 2011 with the production of Land Rover Freelander 2 SUVs from kits.

Domestically made vehicles are taxed less heavily than imports in India. JLR says local production has allowed it to cut the sedan's price by more than one-fifth to 4.5 million rupees (€62,500).

The British brands aim to boost sales in India, where JLR sold only 2,400 vehicles last year.

The Pune facility is building an XF equipped with a 2.2-liter, four-cylinder diesel engine. Jaguar's previous India lineup included only U.K.-made XFs with a choice of 3.0-liter V-6 or 5.0-liter supercharged V-8 engine.