Tata Motors going overboard with JLR

We know how much you have been bored with the same old news of Tata Motors bragging about their latest acquisition of Land Rover. But now comes the latest of all, Tata Motors is planning to invest a huge sum into this British marque JLR ( Jaguar Land Rover). In one of the recent reports by the top most business magazine Business Standard, Tata Motors is set to invest a sum of Rs 7,300 crores (wait for it) only for the research and development part of JLR. The reports also quoted that this amount is 10-11 percent of the total revenue generated by both the companies annually.

Undoubtedly, Tata Motors has attached high hopes with this company and why not when the brand they have acquired is worth millions. But earlier when Fiat was enjoying its reign over JLR, it was only investing a sum of Rs 3,200 crore approximately (when converted to Indian rupees). Anyways, everything doesn’t end here, Tata Motors is further planning to increase the research and development sum to a height of £1.2 billion which when converted in Indian rupees turns out to be Rs 8,800 crore annually. Now this, I question whether is a wise decision or not?

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