Thursday, 22 November 2012

Tata Motors' ticket to glory


How can TATA Motors Make the Most of the Merger between JLR and TATA Motors

Now that TATA Motors owns JLR, they can adopt the best technologies from JLR R&D labs. Since TATA Motors have absorbed the world's best luxury car and SUV makers, they already have an excellent opportunity to move into the luxury cars segment.

Since JLR has a better authority over the European and US markets, TATA Motors now has an advantage of gaining better visibility in those lucrative geographies. They can also save a lot on manufacturing costs by sharing their facilities. Tata motors on one hand can focus on producing more smoother and noise free engines in the low cost passenger cars section. Noise and emissions have been a common observation in the lower end models. Jaguar and Land Rover, on the other hand, must try and design some innovative hatchbacks models that can be priced to suit the Asian markets. Currently, cars like Hyundai I10 and I20, Ford Figo, Volkswagen Vento dominate the market with affordable yet efficient passenger cars. This will be a great opportunity for Jaguar and Land Rover to move into the non-luxury segment resulting in an improved brand image.

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