Tata Motors plans Land Rover assemblage in India from next year

Discussion in 'Current Affairs, News and Analysis' started by viceroy, Aug 10, 2010.

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  1. Tata Motors plans Land Rover assemblage in India from next year - India Business - Business - The Times of India

    MUMBAI: Tata Motors on Tuesday said it plans to assemble Land Rover SUV in India from next year, besides it is also exploring opportunities to produce JLR brands in China, after successfully turning around the fortunes of the ionic British marques.

    "We have seen a good response in India for our Land Rover vehicles. We will start assembling them in India from next year," Jaguar Land Rover's Chief executive officer Ralph Speth told reporters.

    Jaguar Land Rover was taken over by the home-grown Ratan Tata-spearheaded Tata Motors for $2.3 billion from Ford Motor Company in 2008.

    Besides India, the company is also looking to start assembling the JLR brands in China, where it has received good response.

    "We are looking for strong joint venture partners to start assembly-line operations for our Jaguar and Land Rover (JLR) brands in China, which has emerged as the third-largest global market for Land Rover," Speth said.

    He said the Land Rover, in particular, has good response in the Chinese market.

    "China is a good market for our Land Rover vehicles. We are looking to increase our market penetration in China, India and other developing countries," he said.

    However, he did not give any time-frame for starting the assembly-line in China.

    "We are facing a shortage of engines and are working with Ford to boost supplies," he said.
  2. Historically speaking Land Rovers have been assembled (or varieants of) in Spain, Turkey, Brazil and Belgium so this is nothinf new.
    As long as core production remains inthe UK I have no real problem with it.
  3. What exactly do you consider 'core production'? They will, for now, keep producing in the UK for the domestic market (although that is not expressed in so many words), but I guess ultimately you cannot expect what is an Indian company to keep producing in the UK when labour is factor 10 of what it will be in India. I would imagine that most of the export production will be assembled outside the UK if that were not already the case?
  4. Costs in India for skilled workers are rising rapidly. Getting production into a quality comparable to that seen in the Europe/Japan is high on their priorities and certainly what the key enablers are aiming for. The UK is and is likely to remain the centre of automotive excellence for a longtime to come.
  5. Add Nigeria to your list. They used to be assembled here too.
  6. A sad day, but perhaps inevitable. You are quite correct, however the majority of Land Rover production overseas has either been licenced (Santana) or in CKD (Completely Knocked Down) so it's just been a matter of local assembly of UK produced vehicles.

    I take this as something different. This will the complete manufacture of Land Rover and Jaguar in India, and perhaps China. Ultimately, this will, I believe, lead to the closure of Land Rovers plants in Solihull and Merseyside.

    Let's be honest about it, Tata want to make money, they aren't going to keep employing expensive UK workers when the can get an Indian or a Chinaman to do it for a third of the cost.

    Sad, sad, sad.
  7. Tata haven't got were they are by being stupid. Cheaper models may be mived to India, as might the corrent Defender line when its replacement eventually arrives but Range Rover and Discovery production will remain in the UK, so will Freelander at least until Fl2 is replaced.
    Expect to see changes to quality control (long overdue) and production efficiency but I very much doubt we will see massive closures in the UK an wholesale transfer of production to the East.
    With the Speke plant, don't forget the X-Type is also produced there and the market for that vehicle is here.
    Currently the bulk of Jaguar and Land Rover production ends up in the USA, that luxury import market will take a big hit if production moves to India or China.
    China and India are expecting massive rises in production costs in the next year or two, skilled wages are rising massively in both countries and despite the fashion for doing down UK manufacturing, we can and do produce better and faster than many other countries. Cheap labour and production in China and India is not going to last a great deal longer and Tata know that.

    In addition, our new government will not be as keen as Labour was to see industry moved out of the UK and will not provide Tata with incentives to dismatle manufacturing here in the UK.
  8. When Tata anounced it was buying Landrover, I as well as many other Landie enthusiasts hoped that Tata would go back to landrovers roots and start producing "proper" utility landrovers like the Series 3 that could be fixed at the side of the road with a piece of gum and some tin foil. None of your electronic, too complicated for Joe Public to work on engine management systems.

    Unfortuantly emission laws have ruled that out :( I would love to see a "proper" landy built again. The current Defender with the Puma engine my be a good vehicle, but at a fraction under £20k for the very basic model, its not exactly within the budget of many people as a workhorse. It has also started to get into the realms of "you have to plug it in to fix it".

    I love my V8 110 and 300tdi 90 but I fear the day when Landrover prices itself off the market with work vehicles and concentrates on turning the Freelander into a discovery and a discovery into a Range rover.
  9. I used to work for a supplier. This will definetly have a knock on effect in Birmingham. Also the land the Solihull plant is on is worth a fortune.
  10. Don't kid yourselves chaps. The Viceroy has spent substantial time with sharp business folk in India and it is obvious that there will be a knowledge- and technology transfer eastwards, for good. This is not the end, it is just the beginning. They may be 'only' assembling for now, but a lot of Indian engineering staff have already gone to various sites around the world and you would be fool if you thought that extensive production will be kept in the UK indefinitely. Ratan Tata and his group know exactly why they have gone into this business. They think they can turn this around and make a profit within a few years. How you ask? By getting cost under control.
  11. I wouldn't guarantee that. The wage disparity between regions in those countries are as vast as their respective sizes. If you already had a manufacturing base in a country with all the national agreements and permissions, would you think it cheaper to up sticks and start again from scratch in another country or just relocate internally?

    I think there's still lots of mileage to be had from their massive populations in terms of cheap labour.
  12. They seem fairly happy with the US built Ford Flex

  13. Land Rover has already been pillaged for technology by BMW and Ford, this is nothing new. Incedentaly, Land Rover has pretty much always been profitable, it propped up Rover for years.
    Land Rover's TDi engine is still in production in Brazil, Land Rovers have been built all over the world,there isn't anthing new in Tata' plans.
    Tata is well aware the market for an Indian built Range Rover is small but the market for an Indian built Defender is a different kettle of fish...
  14. Not sure on your point BigUn? The Ford Flex isn't Indian or Chinese built
  15. Sorry Jag, I was more interested in the picture rather than words. I was trying to make the point that RR is currently a "luxury" marque in the USA but I suspect the home built Flex pseudo RR may well become more popular therefore imports of UK manufactured RR's could decline?