Tata plans to manufacture JLR vehicles in India

Gajanan Kashikar Published: April 22, 2024, 11:53 AM IST

Tata Motors, India's automotive major, is reportedly gearing up to produce Jaguar Land Rover (JLR) cars at a planned $1 billion facility in the southern state of Tamil Nadu. If this becomes reality, the JLR cars will be manufactured in India for the first time, indicating a significant integration of JLR into Tata Motors' operations since its acquisition of the British brand in 2008.

The plan is to manufacture JLR cars in the country reflects a dual purpose: catering to the domestic market and boosting exports, as confirmed by sources familiar with the matter. While Tata Motors announced plans for the investment of its Tamil Nadu plant in March, details on the specific JLR models to be produced and the intended production capacity were not disclosed.

The British marque has also witnessed a considerable growth in the Indian market. In the fiscal year 2023-24, it reported an impressive 81 per cent increase in retail sales, reaching 4,436 units. These are record-breaking figures for the brand in five years since its introduction to the Indian market in 2009.

The surge in sales is a result of rising demand for its SUVs, with the models, such as Range Rover and Defender, showing significant year-on-year increases of 160 per cent and 120 per cent, respectively. While the Range Rover Evoque saw a notable 55 per cent increase in sales, the recently launched 2024 Discovery Sport also recorded a 50 per cent growth.

JLR models sold in India are imported as CBU from the United Kingdom or in parts that are assembled at a plant in Pune. It plays a vital role in Tata Motors' revenue, contributing about two-thirds to its total earnings. Its retail sales went up by 22 per cent globally in the last financial year to nearly 4,32,000 units. In addition, In the financial year ending March 2023, Tata reported its first annual profit in five years, thanks to the strong demand for JLR vehicles.

(With inputs from CNBC-TV18)

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