Tata Motors has just opened its first Indian factory for Land Rovers, the formerly loss-making British brand aiming to make inroads into the booming South Asian market.
A Freelander 2 SUV was the first to roll out of the plant on the outskirts of Pune, near Mumbai. But that’s just the beginning - production of Jaguars is expected to begin at the plant at a later date.
Industry analysts say the move will help Jaguar and Land Rover lower costs and become more competitive in India - the world's fastest-growing major car market. But the question is: Will buyers have confidence in this move?
The right signs are all there, especially from a financial point of view. Tata recenlty announced bumper profits of $2.04-billion (R14.2-billion), of which the vast majority came from the Jaguar Land Rover (JLR) unit.
“We are very optimistic about Jaguar Land Rover in terms of volume growth,” JLR's chief executive Ralf Speth told a news conference in Mumbai after reporting a 25-percent rise in annual unit sales to 243 621.
Ford offloaded Jaguar Land Rover as part of its restructuring efforts after losing $15-billion in two years. In 2007, the British unit sold just 65 500 cars.
While it is now booming under Indian ownership, the new facility raises questions about production at its three plants in Britain where Tata Group chairman Ratan Tata was recently embroiled in a row about the work ethic of local managers.
He told The Times newspaper that “nobody is willing to go the extra mile” at the company or British steel maker Corus, acquired by Tata in 2006.
The company later said he was talking about former managers and was not suggesting they were lazy. -Sapa-AFP & IOL