Way back in 2008, Tata Motors bought the iconic British marquee Jaguar-LandRover for 2.3 billion dollars and then managed to turn things around in less than three years. The Indo-Brit partnership is now ready to take things on the next level. In the company’s 66th annual report, 2010-11, Mr Ratan Tata announced that Tata Motors Ltd and Jaguar Land Rover will jointly develop engines in the future.
The idea of this co development program is to optimize the synergetic strengths between JLR and Tata Motors in India and United Kingdom. As JLR currently gets their engines from Ford, this will be the next step of back-end integration for it and the Indian owner. It will help in cutting costs on manufacturing the vehicles and making them cheaper for price-sensitive markets such as India.
Tata Motors is also planning to prepare JLR to take on the German manufacturers by investing at £5bn over the next five years to improve the quality of the car brands’ products and designs. Furthermore, after assembling the Land Rover Freelander in Pune, Tata Motors has plans to assemble other JLR products in India as well. Tata Motors is also planning to have a assembly plant in China in the near future.
Along with launching new products and variants, JLR will also focus on increasing their presence in Russia and Brazil.
[Source - Online.WSJ.com]