Tata set to roll out JLR in India by mid-2009

24 Apr 2009,

SHANGHAI: More than a year after buying Jaguar and Land Rover from Ford, Tata Motors is all set to drive them into India, looking to launch the Tatas' future roll call iconic brands by middle of this year. "We are set to launch our cars in India and the plans would be announced next month. The cars are likely to be launched by the middle of this year," MDs of Jaguar and Land Rover told TOI at the ongoing Shanghai Motor Show.

Phil Popham, MD of Land Rover, said the companies would have common dealerships in India and begin direct retail from Mumbai before expanding to other cities. "We are looking at dealerships in the top five major cities in the first phase, though expansion beyond Mumbai would happen in a phased manner," he said.

Land Rover has plans to offer its entire range in India, Popham said, adding that the cars would come as completely-built units (CBUs) through the import route, thus attracting cumulative duties of over 100%.

Global sales for Land Rover suffered last year, impacted by the slowdown in the western markets, and closed 2008 at 187,000 units against 226,000 units in 2007. "While the first half was in line with our expectations, recession spread right through in the second half of the year, leading to a big decline," Popham said, adding that he expected "less volumes" than the 2008 levels this year.

On the prospects from the Indian market, he said the demand for luxury cars was currently limited. "We understand that the premium end of the market is still small. But we expect the market to grow," Popham said, adding that sales could be expected only in a few hundreds "to start with."

Mike O'Driscoll, MD of Jaguar, also said that the market for luxury cars in India was not very big now, though holding prospects for growth. "It may initially be a smaller market to start with but we feel that the market has huge potential. We are introducing cars in India for the long-term and understand that it will take a few years to develop the brand," O'Driscoll said.

Commenting on the high import duties in India, he said it was something that was unavoidable. "It is like a fact of life and something we have to deal with," he said. Asked whether the two brands would have synergies with parent Tata Motors on the car retail front, the MDs said no such arrangement was being looked into. "It will not be the case as these brands are different to what they (Tata) sell," Popham said, though adding that Tata Motors would be advising the companies in terms of India expansion plans.