Updated April 18th, 2024 at 16:53 IST

Tata Motors to establish $1 bn plant for Jaguar Land Rover production in India

The facility will be dedicated to manufacturing luxury cars under the Jaguar Land Rover brand.

Reported by: Business Desk
Tata Motors smashes Q2 profit estimates on strong JLR sales | Image:Tata Motors
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Tata-JLR collaboration: Leading automobile player Tata Motors is in the process to construct a state-of-the-art plant in Tamil Nadu, with an investment of $1 billion. According to sources familiar with the matter, the facility will be dedicated to manufacturing luxury cars under the Jaguar Land Rover (JLR) brand.
This ambitious plan signifies a significant milestone, as it marks the first instance of JLR-branded cars being produced from the ground up in India. The manufactured vehicles are slated for both domestic sales and export, highlighting Tata Motors' strategic vision for expanding its global footprint.
 

JLR's global footprint 

While Tata Motors has been tight-lipped on the issue the company had previously announced its intentions to establish the Tamil Nadu plant in March. However, details regarding the types of vehicles to be manufactured and the projected production capacity were not disclosed at the time.
Currently, JLR operates three car manufacturing facilities in Britain, along with production sites in China, Brazil, and Slovakia. In India, where JLR enjoys a niche presence with models like the Range Rover Evoque, Discovery Sport, and Jaguar F-Pace, the luxury brand primarily imports fully assembled vehicles or parts for assembly near Pune city.
JLR's significance within Tata Motors' revenue landscape cannot be understated, contributing about two-thirds of the Indian company's total revenue. The financial year ending March 2023 saw Tata Motors reporting its first annual profit in five years, buoyed by robust demand for the iconic Range Rover SUVs and Jaguar saloons.
Despite its global success, JLR's sales figures in India remain modest compared to competitors like Mercedes-Benz and BMW. However, there's a notable uptick in demand for luxury vehicles in the Indian market, evident from an 81 per cent  surge in JLR's sales in the region compared to the previous year.
Details regarding the specific JLR models to be manufactured at the new Indian plant are yet to be disclosed. However, with Tata Motors' proven track record of innovation and quality manufacturing, coupled with JLR's iconic brand status, this strategic move is poised to reshape the luxury automotive landscape in India and beyond.

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Published April 18th, 2024 at 16:53 IST