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Tata to drive Jaguar into India
June 06, 2008 17:53 IST
Last Updated: June 06, 2008 18:29 IST
After completing the acquisition of Jaguar and Land Rover from Ford for $2.3 billion, Tata Motors [Get Quote] said on Friday it is exploring the possibility of bringing the two British marquees to India.
"Like Russia and China, JLR would be exploring the Indian market also. A team will be coming to India to study the market," Tata Motors Managing Director Ravi Kant told analysts in a conference call.
He, however, said the company was not expecting big numbers from the two brands in India.
"As these are high priced products, we should not be putting big numbers. The market is developing and other high priced products like Mercedes and BMW are also doing well in India," Kant said
Asked if JLR would be adding additional capacity in view of new models XK, XF from Jaguar and other products from Land Rover being in the pipeline, and whether it plans to enter new markets, Jaguar Land Rover CEO David Smith replied in the negative.
"Our capacity has been realigned but we do not expect additional capacity requirement," he said.
On the imminent launch of Nano and the possibility of Tata looking to synergise JLR's distribution network in overseas market, Kant said: "Jaguar and Land Rover are premium products and Nano is at the other end of the spectrum. We have no plans to use JLR network."
On June 2, Tata Motors announced completion of acquisition of the two premium brands in an all cash deal worth $2.3 billion and appointment of David Smith chief executive officer of the brands.
Ford and Tata had entered into a definitive agreement for the deal in March this year.
The purchase consideration included the ownership of Jaguar and Land Rover or perpetual royalty-free licences of all necessary Intellectual Property Rights, manufacturing plants, two advanced design centres in the UK, and worldwide network of national sales companies.
Tata Motors had recently announced a Rs 10,000-crore (Rs 100-billion) capex plan over the next three years, which would include launching 100 new products or variants, streamlining of existing production facilities and setting up four new greenfield units.