Tata Motors unit Jaguar Land Rover will source components from India, its chief executive Ralph Speth told Reuters.

The company has started assembling Land Rover Freelanders at a plant near the western city of Pune.

JLR sold 891 vehicles in India during the fiscal year ended 31 March and expects demand to grow with local assembly of both Land Rover and, later, Jaguar. Rivals Audi, BMW and Mercedes-Benz already assemble some models locally, avoiding import taxes on complete cars and thus making retail prices more competitive.