Taking over Jaguar and Land Rover from Ford has actually made TaTa Motors very profitable.
From April to June of 2010, 2nd quarter sales Tata had posted a net profit of US$430million. From this figure, Jaguar-Land Rover sales have contributed to US$348million. Tata’s share price has also been boosted by about 4percent too. That’s almost three-quarters the total net profit for Tata. Good products have ensured this I suppose.
Now the business process in any large conglomerate, even Tata, is to continue cutting costs and expanding sales so that profits go up. Tata has now revealed that it will begin Land Rover assembly in factories in China and India. Land Rover will begin first in India and there are ongoing discussions with companies in China for joint-ventures and assembly arrangements for China. Which Land Rover model will start first hasn’t been announced as yet.
This would make the cost of exporting Jaguar-Land Rover vehicles in the future much lower if it were assembled in those countries, especially the cost of exports to countries around the region like Australia, China and South East Asia. India isn’t new towards vehicle manufacturing. Even the Korean Hyundai had set up their small car plant in India (for the i10), as with Suzuki (with their Marutis and their Alto).
The only question one may ask is the standard of quality the future India and China assembled Jaguar and Land Rovers. The answer to that is that we would have to wait and see. But notice the fact that no one actually ran away and bought other cars when Tata took over? Its how the product feels and looks like (and the new Jags look really good), regardless of the fact that after this, some Jaguars and Land Rovers will be truly Indian.
Jaguar, Land Rover, Tata Motors and 2 more...
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