Tata to set up a JLR plant in India




    Tata is planning to set up a manufacturing facility for the Jaguar Land Rover (JLR) brand in India, Ratan Tata, the group’s chairman has revealed.

    “We started assembling models of Land Rover here… looking at manufacturing down the road. Economies and skills of India will be available and we do have access to technology in JLR today,” Ratan Tata, Chairman of JLR’s parent company Tata Motors has said.

    The Tatas brought the luxury car brand from Ford in 2008 for $2.3 billion. At that time the company was deep in crisis and has asked for the government help to stay afloat. Last year JLR saw its sales rise 26% and delivered a profit of over a billion euros.

    The company has made one of the most remarkable comebacks in auto industry’s history. Buoyed by the good results, the Tatas now want to cut cost by relocating some of the manufacturing facilities and synergise operations with Tata Motors.

    The plant will not just assemble the Jaguar, Land Rover cars, but run  the complete manufacturing process. “We are in discussions with Fiat for engine supply and other joint venture possibility ahead,” Ratan Tata told reporters.

    The acquisition gave a big boost to Tata and brought the technological expertise of the premier brands to the company. Given that JLR sales are driven by India, China and Russia, it makes to locate  the manufacturing hub in an Asian country. On the other hand Tata Motors gets 50-60 per cent revenues from sales abroad, so Tata Motors would also benefit if it’s was able to leverage jaguar Land Rover expertise to manufacture cars for the international markets.

    The JLR sells JLR sells XJ, XF and XK sedans from the Jaguar range in India and the Freelander, Discovery and Range Rover SUVs from Land Rover. Early last year, during the riots that convulsed Britain, the JLR CEO had indicated  that the company would increasingly look for parts and manufacturing from countries like India.  The strategy seems to be at the point of materializing now.