Posts Tagged ‘Jaguar Land Rover’

Jaguar Land Rover poised to “make in India, export to the emerging world”

March 2, 2013

Jaguar Land Rover sells around 250,000 Land Rovers and about 55,000 Jaguars worldwide.  In 2011/12 this generated about £13.5 billion sales with a profit of £1.5 billion.  They will spend around £2 billion in the 2013 financial year on new products including a new £350 million engine plant in the West Midlands.

JLR’s Strategy (Sustainability Report), JLR Strategy, states:

In 2011 we expanded assembly operations into India, one of our key markets, and announced plans for our first manufacturing facility abroad in another key market, China, through a joint venture with Chery Automobile Company Ltd. We predict Jaguar Land Rover sales will more than double in volume by 2020, largely due to increasing demand in emerging markets.

Now Reuters reports that the emerging market strategy is progressing fast and that JLR is poised to move from just assembly to the complete manufacture of some brands in India. They join the growing number of players who now see India as a sort of export hub to emerging markets.

Jaguar Land Rover (JLR) is investigating the potential of manufacturing cars in India, company sources said, as the British luxury carmaker looks to build on its growth in emerging markets with the help of Indian parent Tata Motors.

JLR, which has ridden a wave of surging demand in China and other emerging markets to post record profits over the past year, is “actively exploring the possibility” of building cars from scratch in India, said one company source.

“The idea is being looked into, with the (Jaguar) XF and (Land Rover) Freelander the obvious candidates,” said another source with knowledge of the matter.

The British brands, which already assemble two models in India using parts and engines shipped from factories in the UK, will also begin assembling its popular Range Rover Evoque in the country soon, the first source said without providing details.

Building cars in India, which has developed into an emerging market export hub for many global carmakers, would allow JLR to skirt high import taxes on luxury cars, which the country’s finance minister proposed raising to 100 percent from 75 percent in his budget speech last week.

… JLR will exhibit a new 9-speed automatic Evoque and an electric-powered version of its Land Rover Defender at the Geneva Motor Show next week.

Bought by Tata for $2.3 billion from Ford in 2008, JLR has defied those skeptical of its future under Indian ownership to roar back into profit over the past three years as the main growth driver for its now-struggling parent.

Continued growth in emerging markets such as India and China, which accounted for 22.3 percent of its sales in the December quarter, is key for JLR as it embarks on an expensive overhaul of its production and product clout. The carmaker is investing $1.7 billion with local partner Chery Automobile Co in a factory in China.

JLR lags rivals BMW AG, Volkswagen AG’s Audi and Daimler AG’s Mercedes-Benz in assembling cars in India, where the luxury market is expected to swell by around six times by 2020 to 300,000 cars a year, according to business consultancy Frost & Sullivan. ….

…. Earlier this year JLR started the assembly of the 2.2-litre diesel version of the Jaguar XF saloon at a plant in Pune, west India, tucked away in a corner of a sprawling production site where Tata builds its heavy duty trucks and hatchbacks.

Screwed together using engines and components shipped from JLR’s Castle Bromwich plant in Birmingham, central England, the company has also been assembling its Land Rover Freelander 2 in Pune since May 2011.

The XF and the Freelander 2 are JLR’s best-selling models in India, where it sold 2,288 cars in the year to March 2012, up 157 percent from the previous year. ….. 

Jaguar Land-Rover soars even higher with Tata Motors

February 14, 2012

Jaguar Land-Rover has not merely survived under Tata ownership, it has thrived in a way few would have believed possible in 2008 when Ratan Tata acquired JLR from Ford. It’s profits are soaring and has contributed 78% of the parent company’s profits. And  investments and jobs in JLR’s UK operation are growing.

Dow Jones reports:

(more…)

Jaguar Land-Rover thrives under Tata and fuels Tata Motors profits

September 18, 2011

When the Tata Group with Ratan Tata acquired Jaguar Land-Rover (JLR) in 2008 there were many disturbing and even depressing omens. The financial crisis of 2008 was just beginning to emerge. JLR was bleeding cash and Ford Motor Company were happy to bail out for the $2.3 billion that the Tata Group paid. In India Tata shareholders and analysts were concerned that they had bitten off more than they could chew. The Tata Group had relatively low debt and the levels of debt that they would have to take on not only for the acquisition but almost as much again for investment in JLR raised the fears that JLR could bring not only Tata Motors but the whole group down. The price was seen as being too high for what was considered a “vanity” acquisition. In the UK there were fears that the strong Jaguar and Land-Rover brands would be hurt badly by coming under Indian ownership. Jobs would be lost to Mumbai and technology would be stolen the story went. The company culture would be destroyed and innovation would come to an end. How could an Indian company messing around with a car like the Nano have the audacity to think that they could offer anything to two thoroughbred brands such as Jaguar and Land-Rover?

But 3 years on the story of JLR under Tata is an island of optimism in a gloomy sea. And it is not just optimism. The “vanity” acquisition has a gilded edge. JLR profits are up sharply and it contributes more than 50% of Tata Motors profits. An Indian company that dealt primarily with cheap small cars and trucks succeeded where Ford Motor Co and few others before had failed.

The Telegraph: Jaguar Land Rover is poised to deliver a major boost to the Government’s plans to boost growth by confirming this week that it will build a £400m engine plant in the Midlands that will potentially create up to 2,000 jobs.

JLR’s fortunes have undergone a dramatic transformation under the ownership of Indian group, Tata Motors, which bought Jaguar and Land Rover from Ford in 2008. …. 

The company was forced to turn to the Government for support in 2009 when car sales around the world crashed, but walked away from negotiations when Lord Peter Mandelson, the trade secretary, demanded strict terms including the right to appoint the chairman. The company then secured debt from commercial lenders and was able to reap the benefits of a surge in demand for Jaguars and Land Rovers in Asia.

In the year to March 31, JLR made a record pre-tax profit of £1.1bn after increasing sales by 26pc to 243,621. Under the leadership of chief executive Ralf Speth and Tata chairman Ratan Tata, JLR is investing £1.5bn a year in new products and has ambitions to drive production at its three Midland plants to 500,000 vehicles a year. The company has already hired 3,000 staff this year, including a record 350 graduates, and now employs almost 21,000 people in the UK.

JLR’s engines are currently supplied by Ford from plants including Bridgend and Dagenham in the UK…… 

Mr Tata also played down the loss of Carl-Peter Forster, who has stepped down as Tata Motors chief executive. He said: “The credit for the turnaround of Jaguar Land Rover goes to the management team and workforce. No single person can or should take credit.”

And the culture-clash that was feared just did not happen. Instead a new spirit seemed to be infused into JLR. Kevin Stride, the chief engineer of the highly-acclaimed XF program said in 2009

“There’s a real buzz around the brand at the moment, Even in a difficult world, there’s a buzz because we’re feeling empowered, we’ve got the right product line-up to go and tackle the world and we’re gaining some confidence. 
“If you went to people at different function levels in Jaguar Land Rover and asked what they thought of Tata, you’d get a big thumbs-up. It’s a good place to be at the moment. For individuals like myself, it’s changed for the better. We had a great relationship under Ford. People were cynical about that, but they were a very good company to work for. With Tata, it’s different, but different in a good way. …. We are held accountable very clearly as an independent company, whether in engineering or marketing or finance, we are held accountable for proper business performance, which in the old regime was a little filtered. It was very difficult to see cause and effect. We were not able to be as focused as we are now. ….. Tata has a very healthy way of approaching all the businesses they own. They don’t centralise it, they don’t put layers of bureaucracy in it. They evaluate the business model; if they like it, they buy the company and demand that they deliver on the business plan. You can’t just meander off and fail. ……. Cultural change is the hardest thing to do. It does take time. But we’ve been with Tata for a year, we are more agile already, people (within JLR) are questioning why we do things and if it adds value, and we are feeling more empowered to go and attack it. If it doesn’t make any sense and it adds another layer, let’s not do it any more.

…. Since Tata have come in, we’ve now got an insight into how they deal with Indian sources and sources within the whole of South-East Asia. My perception is that they are extremely focused businessmen and extremely principled in what they do, which is great coaching for us as a company. We’ve gone and looked at how they operate as a company – how they source components, how they design them, how they manufacture them – and we’ve got quite a bit to learn from them on the business side.

Jaguar is able to offer an insight into quality processes in the premium world. In terms of our engineering simulation and development, we’re pretty advanced for a company the size of Jaguar Land Rover. That’s something we’ll be able to provide benefit to the Tata Group in years to come”.

And the story is far from over yet. While cash management is the mantra of the moment, there are ambitious plans for the introduction of new models and upgrades of the existing ones in a long-term plan that runs until 2014. Tata Motors and JLR are now in “very intensive discussions” with a leading Chinese car maker about forming a historic joint venture that would see the company also produce its luxury cars in China.

CarAdvice: With tough economic times hurting sales of Tato’s famous Nano, Jaguar Land Rover are now generating a massive 57 percent of Tata’s revenue. The British brands have seen their pretax profit increase 20-fold to 1.12 billion pounds ($1.76 billion) for the fiscal year. As it stands today, Tata and its Jaguar Land Rover division is valued at over $12 billion.

It wasn’t just a matter of good fortune that the brands have become successful, in fact, Jaguar is still striving to improve with sales down 27 percent for the last quarter. Land Rover on the other hand, has seen significant growth (up 22 percent for last quarter) following strong demand for its upmarket SUVs.

The Range Rover Evoque  has already seen more than 20,000 pre-orders, despite not going on sale till September.

Tata is investing a massive $2.5 billion into Jaguar Land Rover product development each year to keep the flow of new products coming. This should see Jaguar offer a significantly larger range to turn the sales slide around. The multi-billion dollar annual investment will see the development or upgrade of 40 new vehicles across the two brands over the next five years. The two that we look forward to the most are the Jaguar C-X75 supercar and an entry-level sedan to rival the Mercedes-Benz C-Class and BMW 3 Series.

The C-X75 is meant to showcase Jaguar’s engineering prowess and build its brand credibility to compete with its German rivals. The hybrid supercar can accelerate from 0-100km/h in under three seconds and run on electric power alone for around 50km: image CarAdvice.com.au

It will be tough for Jaguar to mount a serious challenge to Audi, BMW and Mercedes-Benz but perhaps with Tata Motors this is not impossible. And it will be a healthy and welcome development for the car industry.

Tata Nano +: Tata Motors riding high

September 19, 2010

Tata Nano +

Tata Motors is to woo Indian small car budget customers by launching an upgraded version of its Nano, the new Tata Nano Plus sometime in 2011. Tata Motors plans a Nano Plus with upgraded features. The Nano+ for the Indian market is expected to be similar to the Nano Europa.

Tata Nano was launched to woo the Indian automobile customers with its Rs. 1 lac (2200$) price tag but has failed to live upto the initial hype because of technical problems and issues of delayed delivery. The new Tata Nano + will include a more powerful 1000 cc engine instead of the older 623 cc engine. It will also include ABS, alloy wheels, integrated music systems and improved interiors. The car will be on the lines of Nano Europa and will compete with Maruti Alto and Chevrolet Spark. Delivery of the car  should not be a problem as the new Sanand plant increases production.

Tata Motors’ global vehicles sales rose 29% to 85,411 units in August 2010 over August 2009. The global sales include figures of its British luxury unit Jaguar Land Rover, whose sales rose 29% to 16,220 units in August 2010 over August 2009.

Tata CNG hybrid bus

Tata CNG hybrid bus

Tata Motors are also bringing out India’s first CNG-Electric hybrid public transport bus. It can accommodate 32 people, uses a parallel hybrid system and has a top speed of 72 kph.

Tata Motors has reported a growth of 29 percent in August. The entire sales of Tata’s vehicles totaled to 85,114 units in August 2010, a growth of 29 percent over August 2009. This has taken the cumulative sales for the fiscal year (April 2010 – August 2010) to 424,938, higher by 42 percent compared to the corresponding period in 2009-10. Sales of all commercial vehicles were 40,882 last month, a growth of 25 percent, taking the cumulative sales to 192,612, a growth of 35 percent.

2009 Jaguar XF photographed at the 2008 Washin...

Jaguar XF

Sales of all passenger vehicles were 44,232 in the month, a growth of 33 percent and the corresponding cumulative sales are 232,326, a growth of 49 percent. Tata passenger vehicle sales, including those distributed, were 28,012 for the month, a growth of 35 percent with a cumulative increase of 50 percent. Jaguar Land Rover global sales in August 2010 were 16,220 vehicles, higher by 29 percent. Jaguar sales for August 2010 were 3,788, higher by 33 percent, while Land Rover sales were 12,432, higher by 28 percent. Cumulative sales of Jaguar Land Rover for the fiscal are 92,759, higher by 46 percent. Cumulative sales of Jaguar are 24,919, higher by 31 percent, while cumulative sales of Land Rover are 67,840, higher by 52 percent.

Tata Motors is planning to launch new models with its Venture MPV and Aria Crossover in the near future.


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