JLR on Top of Tata Motors

No one would have thought that the loss-making JLR would not only turn to profits but also help Tata Motors to stay in profits.

Published: 08th December 2013 06:00 AM  |   Last Updated: 07th December 2013 02:43 PM   |  A+A-


In 2008, then Tata Group Chairman Ratan Tata decided to buy out the ailing Jaguar and Land Rover (JLR) company from Ford Motors. He was told that decision would hurt the profits of Tata Motors which was then doing well in the domestic front, but the man knew what he was doing. Ammar Alvi takes a look at JLR’s evolution.

It was born in the UK and has been a brand that everyone has believed in because of its rich heritage and impressive products. Jaguar was picked up by Ford in 1989 and Land Rover from BMW in 2000. For the next eight years, Ford tried to change the fortune by launching new products. This strategy worked but could not reap results it expected. With US domestic sales on decline and Ford Motor Company trying to save its own business, the decision was to sell both brands to Tata Motors in 2008 for $2.3 billion.

Ratan Tata later said, “We have enormous respect for the brands and will endeavor to preserve and build on their heritage and competitiveness, keeping their identities intact.”

No one would have thought that the once loss making JLR would not only turn to profits but also help today Tata Motors to stay in profits. In India, vehicle sales have suffered. Nano has not given the company the push it had expected. However JLR has been selling Jaguar XF and XJ and Range Rover SUVs like hot cakes in countries like China and Russia, resulting in Tata Motors making $566 million in profits in the fiscal second quarter ended September 2013.


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