Tatas to launch JLR brands in India next year

[spawnofsatan]

I just read this, wonder what they will price the range rovers at.


Even as statutory approvals for the acquisition of iconic brands Jaguar and Land Rover (JLR) are nearing completion, Tata Motors is planning to bring these brands to India as early as 2009.

Initially, they will be brought in as CBUs (completely built units) and sources indicate that plans are also on to bring the models as CKDs (completely knocked down) in a few months. While CBUs attract a customs duty of 114%, CKDs attract a duty of around 15%.

Among the Jaguar portfolio, the Tatas will bring in Jaguar XF which competes with the Mercedes E class and the BMW 5 series. The XF, if brought in as a CBU, will sport a price tag of around Rs 40 lakh (which includes the 114% customs duty and will have an option of either a 2.7-litre diesel engine or a 3.6-litre petrol engine.

Among the Land Rover models, the Freelander will be an obvious choice. The Freelander retails for prices starting from £20,935.

A Tata Motors official said the company has not taken any decision on the India launch of JLR brands. This year, Tata Motors has its hands full with the launch of Nano, a new Indica and Indigo and Fiat brands like the Grande Punto and Linea.

Initially, Tatas will look at one dealer in each metro for the JLR brands. The company will shortlist one of its existing dealers and the dealer will have to put up a separate showroom.

Although sources indicate that high real estate costs may force most of these dealers to expand existing showrooms, such high-end brands normally have independent showrooms as the customer profile is very different.

Incidentally, Mumbai-based dealer Navnit Motors already distributes the Land Rover independently. Navnit Motors retails Discovery and Range Rover Sport and is looking to bring in Freelander at a price tag of around Rs 35-40 lakh. “We will continue to retail the LandRover models,” said Navnit Motors managing director Sharad Kachalia.

Tata Motors acquired the JLR brands from Ford Motor for $2.3 billion. Ford has contributed about $600 million to JLR pension plans. The all-cash deal, which was finalised in March, includes all necessary intellectual property rights, manufacturing plants, two advanced design centres in the UK and a worldwide network of sales companies.

Tata Motors is quite certain that it can bring the JLR brands back to profitability after it recently saw the new model lines and planned product cycles of Jaguar and Land Rover.

Last week, Tata Motors said it would raise up to Rs 7,200 crore from three rights issues to help fund the acquisition. On completion of these issues, it would also raise a further $500-600 million from an overseas equity issue.

Long-term agreements have been entered into for supply of engines, stampings and other components to Jaguar and Land Rover. Other areas of transition support from Ford include IT, accounting and access to test facilities.

The two companies will continue to cooperate in areas such as design and development through sharing of platforms and joint development of hybrid technologies and powertrain engineering.

The Ford Motor Credit Company will continue to provide financing for Jaguar Land Rover dealers and customers during a transition period. Tata Motors is in advanced stage of negotiations with leading auto finance providers to support the Jaguar Land Rover business in the UK, Europe and the US, and is expected to select financial services partners shortly.

SOURCE: Tatas to launch JLR brands in India next year- Automobiles-Auto-News By Industry-News-The Economic Times

[CrAzY dRiVeR]

The XF is a good car, but then TATA might have to think about bringing it in as a CKD. Pricing it higher than the equivalent Mercedes or BMW might not be a good idea in the Indian market.

The bigger scheme of things should include what all they can pick up from the ownership of the brands. With the Safari soon to come up, i hope TATA can use the Land Rover experience to make it a worthy off-roader.

[dadu]

Yeah!!! I look forward to the LR here, its asd they will not mfg it here, that would have had a great impact on its cost.

[AMATMO]

there might ba a mistake in typing,is tax on ckd as less as 15% as mentioned above?
if so then why is octavia priced doulbe of what it sells at in europe?

[GTO]

Man, *wiping hands in glee* I just can't wait for CKD (reasonably priced) Land Rovers and Jaguars! Bring 'em on, Tata. Knowing Tata, they will eventually be priced well. Knowing the Indian fascination with high-end brands, sales will be an absolute washout.

[fx45]

there is an extensive dealer network and precision technique needed.. to set up the JLR dealer and distribution in india.. as the local Tata dealers wont do.. you can go and service your fiat at the tata show room... but no one will like to get their LR serviced beside a sumo grande.

[suman]

Originally Posted by GTO

Knowing Tata, they will eventually be priced well. Knowing the Indian fascination with high-end brands, sales will be an absolute washout.

Exactly what I was thinking! So I can actually dream of owning a LR some day in the not too distant future (as & when the CKD route happens)