JLR to aid Tata Motors in building 2 global SUVs

Last year, we had reported that Tata Motors was considering building two new SUVs with inputs from its British subsidiary, Jaguar Land Rover (link to news article). However, the project could not go forward as cost and positioning proved to be stumbling blocks. Now, according to media reports, the company has worked its way around these hurdles and its board has approved the proposal.

The company will position the two SUVs that it builds as global products and are expected to be introduced in the Indian market in 2017. The two SUVs, a 5-seater (codenamed Q501) and a 7-seater (codenamed Q502) are expected to be priced in the Rs. 16-25 lakh range. Jaguar Land Rover will assist the company in areas of architecture, performance, technologies and better body stiffness. Tata Motors is planning to sell 80,000 units of these SUVs in regions such as South- East Asia and Gulf Cooperation Council countries.

Tata Motors is looking to establish itself as a global player in the world of passenger vehicles. However, it has had a number of issues with regard to quality of its products, which has resulted in the company gaining a rather poor reputation.

In the domestic market as well, Tata Motors has lost a lot of ground to its main rival in the SUV segment, Mahindra.

Source: Live Mint

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