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TaMo, JLR plan emerging mart car

Move part of efforts to integrate operations of the companies; Also weighing CKD assembly of more JLR vehicles in the country

TaMo, JLR plan emerging mart car

Tata Motors and Jaguar Land Rover (JLR) are working on a concept car that will be developed especially for emerging markets like India.

The car is at a development stage called ‘DR0’, or the concept stage. There are five stages to productisation at Tata Motors: DR5 is when the final product is out, while DR2 is the make or break stage where the design is frozen.

“It’s too early to talk about the car,” PM Telang, managing director, Tata Motors, told DNA.

The car is part of efforts to integrate the operations of Tata Motors and JLR.

“We are trying to combine the synergies of both the companies. We have certain strengths in understanding the requirements of emerging markets and we also have cost competency. JLR, on the other hand, has the strength in product innovation and developing new-generation vehicles,” Telang said.

The product will have Tata underpinnings to it, a company source said. “The platform is likely to be designed in India and vital technology inputs, especially interior engineering will be JLR’s,” the source said.

The product is likely to bepriced at Rs 20-30 lakh, sporting a Tata badge.

“There will be no cannibalisation with Jaguar since they are priced above Rs 50 lakh,” the source said.

During the analysts meet held after the announcement of last fiscal’s results, Tata Motors had mentioned that premium sales growth will be seen mainly in developing markets, especially China.

JLR opened purchasing offices in China and India during 2009 and will continue to look at strategic low-cost sourcing of materials and components, the company had said.

The signs of integration have been visible lately, especially after JLR set up its purchasing office for components in Pune to take advantage of its Indian connection.

In the past, Tata Motors has always stressed on the point that the integration exercise between JLR and Tata Motors is more about sharing of capabilities than components.

Besides component sharing, the two are also exploring possibilities of locally assembling JLR cars in India.
Recent reports said the two companies are planning to assemble a few Land Rover models in India.

Telang said the two will consider a completely knocked down (CKD) assembly of JLR products in India.

Product design and other major aggregates will be controlled by JLR. This is how we plan to start the process,” he added. Meanwhile, JLR is also looking at setting up assembly lines in China for its Land Rover models.

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