'Silly' taxes make manufacturing Jaguar, Land Rover impossible in India

[CZAR]

I don't understand - Renault, Hyundai, Nissan and even Peugeot are using Chennai, Pune as manufacturing hubs. What kind of "Silly" taxes are not hurting them and are likely to hurt JLR?!

 

[Abingdonboy]

I don't understand - Renault, Hyundai, Nissan and even Peugeot are using Chennai, Pune as manufacturing hubs. What kind of "Silly" taxes are not hurting them and are likely to hurt JLR?!

Exactly, I was just bout to make this argument. When companies like the above are making India their regional and global manufacturing hub there clearly isn't the view that there is "silly" taxes by others. Mr TATA is being a bit dubious because he is neglecting to mention that these taxes are only imposed on the most expensive super luxury brands/vehicles and because of this the JLR products are going to quite price inelastic meaning the slightly higher price will not lead to a particularly representative decrease in demand as the customers are going to be able to pay the difference with little hassle.

Fair enough he is looking out for his own business but he should have been a little more clear and fair.

 

[trinity]

^^

"Asked about the difficulties in manufacturing these cars in India, Tata said, "Because we do not have scale of manufacturing here, we are selling about a 1,000 Jaguars a year and you would need to be at least four to five times that in order to justify the investment that you would make ..."


The car makers that are using Chennai and Pune as a base of operations have already captured a slice of the Indian market coz they built around the small car market initially I believe, then expanded their line up from there to export. Whereas this is specifically dealing with Jaguar only which are high end cars.

 

[Abingdonboy]

^^

"Asked about the difficulties in manufacturing these cars in India, Tata said, "Because we do not have scale of manufacturing here, we are selling about a 1,000 Jaguars a year and you would need to be at least four to five times that in order to justify the investment that you would make ..."


The car makers that are using Chennai and Pune as a base of operations have already captured a slice of the Indian market coz they built around the small car market initially I believe, then expanded their line up from there to export. Whereas this is specifically dealing with Jaguar only which are high end cars.

So is it the tax laws or lack of demand that is the issue for JLR in India?? Come on you can't complain if your luxorious brand isn't making huge sales in India as of yet and then blame this on taxes. In a few years the demand for JLR products will be much higher in India so the problem should be sorted.

 

[trinity]

So is it the tax laws or lack of demand that is the issue for JLR in India?? Come on you can't complain if your luxorious brand isn't making huge sales in India as of yet and then blame this on taxes. In a few years the demand for JLR products will be much higher in India so the problem should be sorted.

Im not complaining but you got to look at this from a global perspective. If we don;t support TATA who will? All other nations support certain core companies that have placed a lot of good will in their respective nations. I agree in a few yrs as afffluence gorws, it will be inevitable. Im just pointing out, our govt is still now prepared for a global world. We need to speed up certain projects and time is of the essence.

 

[neehar]

ouch..that hurts...

So is it the tax laws or lack of demand that is the issue for JLR in India?? Come on you can't complain if your luxorious brand isn't making huge sales in India as of yet and then blame this on taxes. In a few years the demand for JLR products will be much higher in India so the problem should be sorted.

exactly...its just the demand supply issue...the demand for luxurious cars are increasing day by day...hope i soon see another jewel of tatas in india..

 

[Abingdonboy]

Im not complaining but you got to look at this from a global perspective. If we don;t support TATA who will? All other nations support certain core companies that have placed a lot of good will in their respective nations. I agree in a few yrs as afffluence gorws, it will be inevitable. Im just pointing out, our govt is still now prepared for a global world. We need to speed up certain projects and time is of the essence.

Sir, JLR is a PVT high-end, luxurious brand. It is not appropriate for the GoI to be making certain protectionist gestures for this one brand. And besides it's not like the JLR brand is on its last days, ever since TATA took over the brand has been on an upward trajectory and is going fro strength to strength. In a few years when there is sufficent demand then JLR/TATA can move some more manufacturing to India but there is hardly any need for the GoI to support them, this would be very wrong indeed IMHO.

 

[Rajaraja Chola]

Patrons of GMR in India have allowed one clause to the the effect that no other airport within a 150km radius of Delhi airport can come up and thus elimnated furure competition. Policy framers should have been aware that a very busy airport like Delhi must have an auxilary airport at least to act in emergency. Vast tract of land around Delhi airport has been given away to the blue-eyed GMR. Many international airlines have termed Delhi airport as world's costliest onr. Considering track record of GMR in India, it can easily be said that their formula of pocketing power-that-be didn't work in Maldive.


The reason i brought it up is becoz vested powers in India can and will go out their way to help GMR but wont do **** for TATA who has done more for India than any other corporation since the British Raj. Wake up ppl.....our govt is a f-ing joke

Actually VIP landings are handed at Palam Air base. its very prerogrative of a company to have assurances to obtain their invested money back.

 

[Abingdonboy]

Patrons of GMR in India have allowed one clause to the the effect that no other airport within a 150km radius of Delhi airport can come up and thus elimnated furure competition. Policy framers should have been aware that a very busy airport like Delhi must have an auxilary airport at least to act in emergency. Vast tract of land around Delhi airport has been given away to the blue-eyed GMR. Many international airlines have termed Delhi airport as world's costliest onr. Considering track record of GMR in India, it can easily be said that their formula of pocketing power-that-be didn't work in Maldive.


The reason i brought it up is becoz vested powers in India can and will go out their way to help GMR but wont do **** for TATA who has done more for India than any other corporation since the British Raj. Wake up ppl.....our govt is a f-ing joke

AFAIK any such guarenttes by GoI to GMR run out in 2018/19 after that the NCR is fair game for any wannabe airport. But. to be fair, by 2020/22 IGI in Delhi wil be able to handle in excess of 100 million passengers a year and will have 6 terminals so Delhi will be well catered to wrt airport connectivity. Also such assurances were a must for GMR to even consider taking on such expansion and upgradation work of IGI, these are common bushiness practices to protect your investment sir. This is how the world works.

 

[trinity]

AFAIK any such guarenttes by GoI to GMR run out in 2018/19 after that the NCR is fair game for any wannabe airport. But. to be fair, by 2020/22 IGI in Delhi wil be able to handle in excess of 100 million passengers a year and will have 6 terminals so Delhi will be well catered to wrt airport connectivity. Also such assurances were a must for GMR to even consider taking on such expansion and upgradation work of IGI, these are common bushiness practices to protect your investment sir. This is how the world works.

Yup I Understand but you fail to acknowledge what good TAA has done for India for close to 200 yrs. the world works a lot of ways and that itself doesn;t mean India needs to follow suit. GMR gets a lot of support from our govt in regard to a foreign country then why not TATA in India itself?

Actually VIP landings are handed at Palam Air base. its very prerogrative of a company to have assurances to obtain their invested money back.

What about friendly competition? At the end, it is the customer/consumer who suffers not VIP or politicans.

 

[The A-5]

hahaha...I thought they are talking of Jaguar combat aircraft until I read "land rover" in the title.

 

[Rajaraja Chola]

Yup I Understand but you fail to acknowledge what good TAA has done for India for close to 200 yrs. the world works a lot of ways and that itself doesn;t mean India needs to follow suit. GMR gets a lot of support from our govt in regard to a foreign country then why not TATA in India itself?





What about friendly competition? At the end, it is the customer/consumer who suffers not VIP or politicans.

If the T 3 terminal is becomes too much full, and cannot be expanded, Why not?
If there is a requirement, we ,ust definitely build a 2nd one.

 

[CZAR]

Yup I Understand but you fail to acknowledge what good TAA has done for India for close to 200 yrs. the world works a lot of ways and that itself doesn;t mean India needs to follow suit. GMR gets a lot of support from our govt in regard to a foreign country then why not TATA in India itself?

What about friendly competition? At the end, it is the customer/consumer who suffers not VIP or politicans.

Tata has done what it should have to maximise the earnings of its shareholders. As for tax breaks - i'd much rather have the govt offer tax incentives to infra cos which are bleeding right now. If india is to sustain growth we need roadways, electricity, steel - not luxury cars.

On na associated point - various economists such as Parthasarathy Shome have pointed out that tax sops lead to inefficient investment - as companies loose sight of longer term goals / objectives due to the eye candy served up as tax holidays.

 

[Abingdonboy]

Tata has done what it should have to maximise the earnings of its shareholders. As for tax breaks - i'd much rather have the govt offer tax incentives to infra cos which are bleeding right now. If india is to sustain growth we need roadways, electricity, steel - not luxury cars.

On na associated point - various economists such as Parthasarathy Shome have pointed out that tax sops lead to inefficient investment - as companies loose sight of longer term goals / objectives due to the eye candy served up as tax holidays.

You're right sir. The TATA group, as likeable as they may be, are a profit making corporation just the same. Profits are their number 1 priority- as they should be.

 

[IndianArmy]

Good. Indian Govt must listen to this man. Ratan can be inducted into govt after he retires. We need people with capabilities at centre who are not afraid of being thrown away.

He already is a member of Investment commission of India and Prime Minister's Council on Trade and Industry.