Indian Owner of Jaguar Luxury Vehicle Manufacturer

The iconic British brands of Jaguar and Land Rover have been sold by Ford, to Tata. Tata is an Indian conglomerate which turns over £15 billion a year. In Britain they own Corus, which was formerly British Steel, Tetley Tea and a number of up market London hotels. And of course in buying Jaguar and Land Rover, the company already has automotive experience with Tata Motors, most recently in the news for launching the Nano, the world’s cheapest car.

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However, in the same way that we didn’t notice that JLR was owned by the US branch of Ford, so too will the Indian transition go unnoticed, for the time being. JLR will be making the same cars, from the same factories as Ford will continue to supple the engines, transmissions and a number of other components.

But it is not the national pride which is being upset in the sale of the luxury car brands, it is people wondering whether the Jaguar and Land Rover vehicles are able to hold up as an independent car company. What it will take is a lot of investment and Tata has promised this too, on top of the £1.5 billion it spent to buy JLR, it will continue to finance the production and development.

The billions which are needed to continue a brand like JLR will have to go towards new car development and keeping the factories up to date, something which Ford was unable to keep up with and so sold out. What makes it so difficult for JLR is that they are truly a small car company.

Small enough that between the output of both Jaguar and Land Rover, they are only producing a third of what Mercedes or BMW is managing. This means that JLR has to develop and implement new technology, without having the volume of sales to guarantee financial success. And luckily for JLR, Tata has promised to keep the investments coming, to offer the brand stability and advancement in the future.

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