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Jaguar Land Rover to Spend Over US$5.0 billion to Expand in Next Three Years

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Published on : Sep 25, 2017

Tata Motors Ltd., the parent company of luxury car brands such as Jaguar Land Rover, has been struggling to stay afloat to the growing competition in India, wherein the automotive industry is prospering. The reason behind this the company’s failure to dominate any segment of the market, be it passenger cars or SUVs. However, Tata Motors continues to hold a name for itself in more than 170 countries that it operates it, primarily with its luxury brands.

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Now, Jaguar Land Rover has decided to expand further, setting aside a sum of approximately US$5.3 billion to expand in next three years. Tata Motors may be reflecting three straight quarters of sales decline but it gains more than three quarters of its revenue from the luxury brands and their aim it to add onto it. Most of the expansion will be in the field of new product innovation, technology such as electric cars and autonomous vehicles, and enhancing manufacturing capacity. This was revealed by Deepesh Rathore, the director at Emerging Markets Automotive Advisors in London. Tata Motors is among the most financially-strong companies from India, only behind Reliance Industries Ltd., ahead of the likes of Infosys, Coal India, and Sun Pharma.

Brokers such as Ambit Capital and Morgan Stanley have cut their recommendations of Tata Motors as the company has failed to match the estimates for three months ending June 30. At the same time, Jaguar Land Rover has posted a 49% addition in profit before a tax of US$806 million.