[Redline6800]

Jaguar Land Rover (JLR) is doing spectacularly well at the same time that passenger car sales at Tata Motors are in a free fall. JLR sold more automobiles in 2012, than it did in its entire 65 year history. A stunning vindication of Mr. Ratan Tata’s farsighted 2008 decision to purchase the then struggling JLR.

Across January & February of this year, JLR sold 61,732 premium cars. In the same period, Tata Motors could manage to sell only 25,822 units. Tata Motors has seen sales decline by almost 50 % between January (15209) and February (10613) this year. In February 2013, Nano/Indica/Indigo sales were at a mere 7,769 units, while the Sumo/ Safari/Aria/Venture range managed 2,844 units. Jaguar customers lapped up its products, leading to a 27% increase in February 2013 sales to 4,595 units. Land Rover sold 22,260 units in the same month.



Sales have shot up in the last two months by an average of 25 % across JLR’s major markets in Asia Pacific, UK, North America and China (now JLR’s largest market after the UK). JLR’s range is spread across the XJ, XF and XK from Jaguar and Defender, Freelander 2, Discovery 4, Range Rover, Range Rover Sport and the Evoque. However, the product range needs to be expanded especially in the case of Jaguar, as much of the current range was developed during Ford’s ownership. Engines are still being sourced from Ford and Jaguar plans to invest close to 8 billion GBP by 2017 in new products and engines.

This will not be difficult considering that JLR currently accumulates cash to the tune of USD 2 billion every year, as a result of high margins on its premium cars.

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[ajmat]

I hate to think what would have happened to both companies if the merger had not taken place!

[GTO]

Originally Posted by ajmat

I hate to think what would have happened to both companies if the merger had not taken place!

How 5 years can change fortunes! At one time, Tata saved JLR. Now, it's JLR bringing dollops of cash home.

In this financial report, JLR contributed 7,800 crores of a total of 9,000 crore profit for Tata Motors!

[1100D]

With the F-type and the new-rear drive baby Jaguar Sedan (to compete with the likes of 3-series), things are definite to look up. Jaguar has found its way back to making beautiful looking cars.

Only thing is, they need their own engine range which possibly could be shared with its Indian operations as well. What Tata now needs to look at in the domestic space is to resurrect the once shelved Magna as a 10-15 lakh rear drive luxury sedan. Mahindra can anyday decide to unleash the Merc-W124 based SSangyong Chairman on us.

[ninjatalli]

One consistent question that keeps popping to my mind is why can't we see (product based) synergies being created between Tata Motors & JLR? Especially looking at the product portfolio of Tata.

Even if I just consider quality aspects, I'm pretty sure TM would be able to learn a lot from JLR.

[Maky]

Very Impressive.
I still wait, hope and pray for the day when Tata will fully localise production of Jaguar and Land Rover cars in India. I feel, even though this sounds very silly, ever since Tata an Indian company bought JLR that we are 'entitled' to such cars at prices they sell for abroad since we're Indians : P.
Wishful thinking? ^ _ ^

[esteem_lover]

This is a fantastic turnaround. No one would have bet this can happen in 5 years time. We do get to see more Jags and Evoques around these days. I am sure their Indian sales numbers will also have grown ten fold. Anyone has those numbers ?

[ACM]

1) It would appear to the world that TATA / Indian companies are really good at turnaround and the work done with JLR in that direction would stand as a case study.
2) We and the world both would worry looking at the position of TATA in its own backyard if JLR turnaround was a fluke. It does raise questions and we all hope that TATA has an aggressive plan to turnaround things and get Indian sales back closer to the No.2 postion that they should be at.

[dgupta]

Originally Posted by 1100D

Only thing is, they need their own engine range which possibly could be shared with its Indian operations as well.

Latest report on this can be seen here. Good times ahead for sure!!

[vineethvazhayil]

That is a sad reflection on how Tata has gone downhill with their volume products. It is shocking that a mass market manufacturer is being handily outsold by a luxury marquee (or two of them!)..
Quality, execution, after sales, marketing - everything is on the poorer side. While they had a very capable product in the Aria, that suffered the usual Tata marketing issues. Perhaps they actually needed a new brand - either an upmarket Tata sub brand or a down market Land Rover sub brand to push the Aria. Perhaps what they need is really some fresh ideas and plans for the overall Tata passenger vehicles line. The commercial vehicles are doing alright I suppose.

[esteem_lover]

The taxi segment is also slowly but surely shifting out of TATA vehicles. We see a lot of Etios and Verito on the roads these days. Unless TM start to inspire confidence in their buyers, it is going to be downhill all the way.

[drsingh]

JLR was a warren buffet moment for Ratan Tata .A good business up for sale by previous management (ford) due to their own problems.

Tata motors has neglected passenger vehicles over the past 6-7 years to concentrate on commercial vehicles and JLR acquisition.

I hope it doesn't end up like Berkshire Hathaway . A poor performing business allowed to die its natural death and resources diverted to new acquisitions or businesses.

Just a thought.. I do own tata cars ..

[greenhorn]

When global automakers are looking towards emerging markets for volumes, It is indeed ironic that Tata has found them in the mature markets!

[Samurai]

Originally Posted by greenhorn

When global automakers are looking towards emerging markets for volumes, It is indeed ironic that Tata has found them in the mature markets!

Great statement. If anyone had predicted this situation 5 years back, he would have been rightly called a raving lunatic.

[safari_lover]

Originally Posted by greenhorn

When global automakers are looking towards emerging markets for volumes, It is indeed ironic that Tata has found them in the mature markets!

Originally Posted by Samurai

Great statement. If anyone had predicted this situation 5 years back, he would have been rightly called a raving lunatic.

But isn't the growth at JLR is mainly driven by the emerging markets - China, Russia, et al? IIRC, China is their biggest market now, surpassing even Britain.