Luxury Carmaker Jaguar Land Rover India Ordered to Compensate Showroom Owner for Faulty Engine

Jaguar Land Rover India, the renowned luxury car manufacturer, has been mandated by a consumer forum in Chennai to pay an amount of 42.7 lakh rupees as compensation or alternatively, fit a new engine, along with an additional compensation of 55,000 rupees, to the owner of a top textile showroom in the city. The managing director of Pothys, S Ramesh, purchased a premium luxury diesel car, the XF 3.0 L, from VST & Sons showroom in Chennai for 61 lakh rupees in January 2016.

In an unfortunate turn of events, the car experienced a complete engine failure while Ramesh was on a personal trip to Bengaluru in March 2018. Despite having covered only 22,400 kilometers and being within the warranty period, the engine malfunctioned with a heavy cranking sound. The vehicle was eventually towed to a showroom in Bengaluru, where the service center replaced the engine free of charge due to the warranty.

However, the following year, the car once again experienced a similar engine failure. This time, VST & Sons refused to replace the engine for free, citing the expiration of the warranty. Consequently, the car was left idle at the service center for over a year, without being returned to its owner. Distressed by this situation, Pothys filed a complaint against VST & Sons with the Chennai (South) District Consumer Disputes Redressal Commission, alleging the sale of an “inherently defective” and “faulty” car.

In its defense, VST & Sons contended that the car had been subject to excessive use for commercial purposes and improper maintenance, which had led to abnormal wear and tear of the engine. The showroom also mentioned the delay in returning the car was due to the COVID-19 lockdown.

Jaguar Land Rover India, headquartered in Mumbai, argued that Pothys failed to provide any evidence to support their claim of manufacturing an “inherently defective” car. Although the showroom offered to replace the engine at 50% of the invoice value (approximately 42.2 lakh rupees), Pothys insisted on demanding an entirely new car in an alleged bid to unjustly enrich themselves, according to the car manufacturer’s statement to the commission.

Dismissing these contentions, the commission ruled in favor of Pothys and ordered Jaguar Land Rover India to either pay the penalty or replace the faulty engine, in addition to awarding 55,000 rupees in damages.


1. How much compensation did Jaguar Land Rover India have to pay?

Jaguar Land Rover India was ordered to pay a compensation of 42.7 lakh rupees or fit a new engine, along with an additional compensation of 55,000 rupees.

2. Why did the car experience engine failures?

The car experienced engine failures due to an alleged defect, which occurred within the warranty period.

3. What was VST & Sons’ response to the complaint?

VST & Sons claimed that the car had been subjected to excessive use for commercial purposes and had not been properly maintained, causing unusual wear and tear on the engine. They also cited the delay in returning the car to the COVID-19 lockdown.

4. Did Jaguar Land Rover India agree to replace the engine?

Jaguar Land Rover India offered to replace the engine at 50% of the invoice value but was met with demands for an entirely new car by Pothys.