The company hopes to do so in order to reduce the high production costs
involved in producing the SUV in UK. The low tax structure in India will allow Tata to assemble the
the SUV at lower costs thus reducing the production cost and increasing the profits. Initially Tata will
assemble around 2,000 units of the Freelander which will come into India via the CKD route. The
assembly will take place at the former Mercedes Benz plant in Chikhli, Pune which is now under Tata
Motors. The first model to hit the market after being assembled in India will be the Freelander 2. The CKD assembly will also bring down the cost of the SUV making it more affordable for the Indian consumer. However, the new CKD definition by the government might be a big problem for the company. But it appears that Tata seems to be working with a positive attitude and is hoping that there will be a way out of it.
