Jaguar & Land Rover to establish Engine Manufacturing Plant in India

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JLR is looking forward to set up lower specification engine manufacturing plant in India. The engines that will be developed here will also power some Tata cars too.

March 9, 2012: Owned by Tata Motors, the British marquee Jaguar & Land Rover has announced their plans of establishing an engine manufacturing plant for lower specification engines in India. The lower specification engines will also power some of the Tata cars.

“We are currently building an engine factory in England with an investment of 355million pounds (Rs 2,840 crore) for low emission but high performance engines. Our next step would be to set up another facility in India for entry level engines,” said Mr. Ralf Speth, Chief Executive of JLR. “We would see at how we can synergise our operations with Tata Motors and possibly look at making engines that would be suitable for their cars as well.”

Currently, the company is completely dependent on its former owner Ford Motor for all type of engine requirements. According to Mr. Speth, the future ambitions of the company included setting up of engine plants and so now, the company is looking forward to achieve it. However, he also insisted that the company’s relationship with Ford would remain the same and continue further.

“We are a very profitable company and are investing more in R&D now. We also want to be in the running in the big league of luxury car market worldwide and investment into building new factories is a logical step,” said Mr. Speth. In 2011, the sales of the auto firm grew by 18% to 274,280 units, but this growth is small in comparison to the profits earned by the other firms in the market. For instance, BMW sold 1.7 million units, Mercedes-Benz sold 1.4 million units and the Audi sold 1.3 million units in 2011. One of the reasons for small JLR’s growth is its late entry to the emerging markets like India, Brazil and China.

“We are setting up a plant in India, we are talking about one in China, another one in Brazil, but we are a small company,” Speth added. “I don’t have the skills and resources in-house to orchestrate everything in one step, and we have to move ahead carefully. The big car makers can do it, as they have the pockets to do it, but we have to do it a little more carefully. ”

Thus, the company is not in a hurry and is stepping towards its expansion after analysing the markets carefully.

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