Luxury car maker Jaguar Land Rover Plc ( JLR), which has been bolstering parent Tata Motors profit for the past few of quarters, will be developing a co-branded model with its joint venture (JV) partner Chery Automobile Co. especially for the Chinese market. This is also a regulatory requirement for setting up its
$2.78 billion (around Rs15,290 crore) venture in the world’s largest and fastest growing auto market.
Creating a new model as part of its proposed JV may be an extra “step in the process” but it would be worth the extra mile for the UK-based car maker, said the company. It has seen sales in China expand 52% annually since being acquired by Tata Motors in 2008.
The extra hurdle in setting up its Chinese manufacturing base has come at a time when shrinking operating margins are making Tata Motors’ investors jittery and sector analysts wary that the main earnings driver might be losing speed.
Shares of Tata Motors fell 11.8% yesterday (May 30, 2012) to close at Rs243.35 on BSE despite bumper results announced a day earlier, with March quarter profit more than doubling from the year earlier. The 30-share bellwether Sensex fell 0.77% to 16,312.15 points.
“We will be creating a brand along with Chery for the Chinese market. We are awaiting regulatory approvals from the Chinese authorities but there has been a recent regulatory change and all JVs have to develop a brand for the domestic market,” JLR’s chief executive Ralf Speth said, calling it “another step in the process”.
JLR announced in March this year that its JV with Chery will undertake manufacturing and establish a research and development facility to boost sales.
JRL plans to develop a co-branded car model with its Chinese joint venture partner Cherry Automobile.
....more info
$2.78 billion (around Rs15,290 crore) venture in the world’s largest and fastest growing auto market.
Creating a new model as part of its proposed JV may be an extra “step in the process” but it would be worth the extra mile for the UK-based car maker, said the company. It has seen sales in China expand 52% annually since being acquired by Tata Motors in 2008.
The extra hurdle in setting up its Chinese manufacturing base has come at a time when shrinking operating margins are making Tata Motors’ investors jittery and sector analysts wary that the main earnings driver might be losing speed.
Shares of Tata Motors fell 11.8% yesterday (May 30, 2012) to close at Rs243.35 on BSE despite bumper results announced a day earlier, with March quarter profit more than doubling from the year earlier. The 30-share bellwether Sensex fell 0.77% to 16,312.15 points.
“We will be creating a brand along with Chery for the Chinese market. We are awaiting regulatory approvals from the Chinese authorities but there has been a recent regulatory change and all JVs have to develop a brand for the domestic market,” JLR’s chief executive Ralf Speth said, calling it “another step in the process”.
JLR announced in March this year that its JV with Chery will undertake manufacturing and establish a research and development facility to boost sales.
JRL plans to develop a co-branded car model with its Chinese joint venture partner Cherry Automobile.
....more info