Tata Motors aims to double investments in its Jaguar Land Rover brands

Article by Christian A., on February 22, 2012

The chief financial officer of Tata Motors wants to double the investments in its Jaguar Land Rover brands to 1.5 billion pounds ($2.4 billion, 1.8 billion euros) annually to be used for the launch of new products and variants. CR Ramakrishnan said that Tata Motors has chosen its joint venture partner for the China production of Jaguar Land Rover cars.

The India-based automaker is waiting for the approval of the Chinese government to begin making luxury cars in the country. Ramakrishnan said that the company will reveal the identity this joint venture “very soon.”

In early February, Bloomberg reported that Tata Motors will partner with Chery Automobile. In the quarter that ends December, Tata Motors reported a 40.5 percent increase in profits as high sales of its JLR models offset the slow performance from its domestic arm as it was affected by the high costs and interest rates in India.

About 95 percent of the profit in the quarter that ends on December is from JLR, driven by the demand for its new compact Evoque SUV in growing markets like Russia and China.

Tata purchased luxury brand JLR from Ford for $2.3 billion (1.7 billion euros) in 2008. In the same quarter, JLR reported a 20 percent profit margin, triple the figure reported by its domestic business.

Ramakrishnan expects Tata to begin doubling JLR investments from this fiscal year, which ends on March 31. This amount will also be used to upgrade technology to comply with emission targets. He explained that Tata Motors' distribution joint venture with Fiat in India is not generating the anticipated financial results but he emphasized that there are no plans to terminate the alliance.

If you liked the article, share on:

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries