Tata's roll out Jaguar , Land Rover

The niche, but growing, club of luxury car owners on Sunday got a booster shot with Tata Motors ushering in the British auto icons—Jaguar and Land Rover—after almost a year of acquiring them from Ford. A Jaguar or any of the three Rover models (Discovery 3, Range Rover and Range Rover Sport) would cost anything between Rs 65 lakh to a crore. A Tourbillion, the most expensive watch from the Dior stable, too, comes at the higher end of that range. Tata Motors chairman Ratan Tata said, “This launch heralds the entry of Jaguar Land Rover brands in India. The brands in days gone by were well received in India. However, in the last few years, they had been disconnected with consumers here.’’ The India foray comes at a time when worldwide sales of luxury cars are falling. The global meltdown dragged JLR into huge losses as consumers halted purchases. Sales, after the $2.5 billion takeover by Tata Motors last June, dropped a third to 1.67 lakh vehicles. “Jaguar Land Rover had been condemned in the downturn but they are terrific brands with terrific products. As we come out of the downturn, we should be able to say it was a terrific decision to own them. “As an Indian, I am proud to have these brands and we will bring back to its lost glory,’’ Tata said. JLR, whose top management, including CEO David Smith, Jaguar MD Mike O’ Driscoll and Land Rover MD Phil Popham, were in the city for the launch, declined to speculate on sales numbers for India—one of the world’s growing luxury market that has been insulated from the global meltdown to a large extent. In China, which it had entered five years ago, JLR saw a 63% growth with 12.5 lakh vehicles sold in FY09. The JLR range is comparable to Mercedes S class, Audi A6, BMW 7 series and Porsche’s Cayenne. Luxury car sales in India were up 34% at 10,000 units. With JLR in its arm, Tata Motors caters to various customer profiles and price points—from selling the common man’s utility vehicles to the Queen’s fancy toys. While Tata looks to sustain JLR through the downturn, the UK government’s support is crucial as JLR wants it to guarantee a pound 340 million European Investment Bank loan sanctioned in April. Although JLR has the option of getting guarantees from private banks, it may work out to be an expensive proposition. To get the government’s help, Tata may have part with some equity interest in JLR, besides giving board representation. “We are negotiating at the moment and if there was a large financial package from the UK government to the company then there should be a commensurate level of representation on the board. It is fair and just for them.’’ Meanwhile, he said Tata Motors and its UK subsidiary would work together and share intellectual properties over time. “We have our own range of vehicles. But over time, family resemblance of facilities, sophistication of spares will be commonalised.’’