Jaguar Land Rover announced that the plans of setting up facility in India for manufacturing of engines for the two brands. The two Tata owned brands made this announcement at the Geneva Motor Show, in response to the rising demand for the two British brands. While the high-performance engine manufacturing facility set up in the UK cost over Rs 2500 crore, the Indian investment will be lesser, looking at the fact that the engines will cater for lower range of JLR lineup. The low-spec engines developed will be for India and other emerging markets.
With the company having a top-notch facility in the UK, coming to India with a smaller capacity, India-specific, economical engine is more of a ‘step two’ investment for the company. However, the premium range engines will still be manufactured in the UK facility. JLR disclosed that the engines produced are specifically for the JLR lineup, however, it may be housed in some Tata models if the Indian brand is ready to provide the platform. Its Freelander models are currently assembled at Tata Motor’s plant in Pune.
Currently the Tata owned brands house the Ford engines in various models. With the establishment of a local facility, the dependence of JLR on Ford engine may reduce. Following the ownership of Tata, establishment of a local facility for the JLR was inevitable, and this step will help compete them survive in the German dominated luxury segment in India.
