Tata outlines future plans for JLR
JAGUAR parent Tata Motors has said it plans to produce an entry-level version of the luxury saloon to spearhead its growth into emerging markets while taking on mainstream European competition, notably BMW’s best-selling 3-Series.
Tata also plans to revamp and refresh the entire Land Rover range to make the models more appealing to new buyers in China and India.
The plans, which also include a new Jaguar estate and a new roadster, have been outlined in Tata Motors’ Annual Report.
The company said it would also be scaling up the production of new fuel efficient and hybrid vehicles to keep pace with market demands.
The report states: “The global automobile industry seems to be recovering – in line with the world’s improving economic climate. Market sentiment has improved. The outlook for Tata Motors appears to be robust. The automotive demand in Asia remains strong and the market in Europe, United Kingdom and the United States has improved.
“JLR’s operations have been profitable over the last two quarters and the new Jaguar and Land Rover products recently launched have all been well-received in the market. The company has enormous talent, capabilities and skills, in addition to an impressive development of product and process technologies. These will enable the company to achieve a more prominent position in the international automobile marketplace in the coming years.”
Such has been the popularity of the Land Rover/Range Rover that the company said its immediate priority would be to ensure it could deliver enough vehicles to meet market demands.
This is especially true for China which surprisingly, has emerged as the third largest global market for the brand.
“Studies are under way to consider options to increase market penetration in China, India and other developing markets,” states the report.
It goes on to say: “The operational strategy would be to leverage the company’s strengths in the design and development of products for the base of the pyramid, namely, addressing the often-unserved large potential market at the low end, while also growing in the higher priced segment.
“The company also plans to undertake several joint initiatives which will leverage the respective strengths and economies of its various domestic and overseas establishments.”
Tata’s recent announcement that it plans production of some Land Rover models in China would now appear a crucial part of its long-term strategy for the brand’s success.
“The company is considering widening the product range of Jaguar cars by introducing a station wagon (estate), a new entry-level Jaguar, and a new roadster,” the report adds.
The entry-level vehicle could be a major money-spinner for the company but it will have to learn from previous owner Ford’s mistake.
The Blue Oval attempted to enter the volume market with the X-Type – which is also the brand’s only ever production estate, left – but the model, which was based on a Ford Mondeo platform, never really captured the imagination of consumers and is now being phased out.
However, Tata’s experience at mass production for the Indian domestic market is likely to be invaluable, helping it to keep costs under control.
This point is also dealt with in the report. It states: “Key markets for Jaguar Land Rover such as China, Russia, and Middle East are expected to grow, while the UK, USA is expected to recover moderately Jaguar Land Rover will continue to focus on cost reductions to improve its cost base and competitive positioning in the market.”
This would appear to reinforce the company’s decision to close down one of its production facilities in the West Midlands by the middle of the decade.
A decision on whether the axe will fall on Castle Bromwich or Land Rover’s Solihull plant is still awaited.
Share this story with a client: click the ‘Send to friend’ button below to send an email
