Posts Tagged ‘JLR’

Jaguar Land Rover now the jewel in the Tata Motors crown

January 12, 2014

When the Tata Group acquired Jaguar Land Rover from Ford Motors in 2008 there were many voices in the UK which were highly sceptical. Shareholders in India were concerned that group debt would be too high. They were scared that managing JLR from India could be too big a mouthful and would jeopardise the growth of Tata Motors and its core business in India. In the UK there were fears that the British automotive tradition and history would be threatened.

But five years on, this acquisition has been a resounding success. So much so that it is JLR and its growth which is now providing the bulk of the revenue (72%) and the profit (88%) for Tata Motors and which has more than compensated for the Indian operations which are stagnating in the current downturn.

It is JLR which is now truly the jewel in the Tata Motors crown.

The all-aluminum F-TYPE Coupe range will deliver, in production form, the uncompromised design vision of the Jaguar C-X16 concept, and will complement the existing  F-TYPE Convertible, winner of the 2013 ‘World Car Design of the Year’ award.

The all-aluminum F-TYPE Coupe range will deliver, in production form, the uncompromised design vision of the Jaguar C-X16 concept, and will complement the existing F-TYPE Convertible, winner of the 2013 ‘World Car Design of the Year’ award.

Bloomberg: 

Jaguar Land Rover, the luxury-vehicle division of India’s Tata Motors Ltd. (TTMT), reported record global sales last year, driven by growth in the Asia Pacific and China region.

Jaguar Land Rover’s total worldwide sales rose 19 percent last year to 425,006 vehicles, according to an e-mailed statement. Jaguar brand sales jumped 42% to 76,668 vehicles, the most since 2005, while Land Rover increased 15% for an annual record of 348,338 vehicles, the company said.

Jaguar Land Rover, which Mumbai-based Tata Motors bought from Ford Motor Co. in 2008 for $2.5 billion, accounted for 72 percent of group revenue and 88 percent of operating profit for the year ended March 31. In the quarter ended in September, Tata Motors posted profit that beat analyst estimates as rising Jaguar Land Rover sales outweighed a loss at the parent company’s Indian business. …… 

…. Sales in Asia Pacific and the China region jumped 30 percent during 2013, North America rose 21 percent, the U.K. grew 14 percent, Europe 6 percent and other overseas markets increased 23 percent, according to the statement. 

Under Tata, Jaguar and Land Rover have targeted emerging markets such as China and Russia for growth. In 2013, Jaguar Land Rover had record sales in 38 markets, including Russia, Brazil, Korea and Canada.

The sales growth in 2013 was driven by Jaguar’s F-Type convertible and Land Rover’s Range Rover and Range Rover Evoque models, it said. The F-Type began shipping in May.

It was “a great year in which we have seen some incredibly exciting new models launched to customers across the world,” Andy Goss, Jaguar Land Rover Group sales operations director, said in the statement. “The Range Rover Sport, F-Type, new engines and drivetrains, and a number of 14 Model Year enhancements to our existing lineup have seen Jaguar Land Rover continue to build strong sales momentum in every global region.”

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. ….. 


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