Days after completing the acquisition of the luxury brands Jaguar and Land Rover (JLR), India's largest domestic automobile company Tata Motors is exploring the feasibility of launching the two marques in India.
The company will be conducting a study on the demand for the models of Jaguar and Land Rover, which are priced between Rs 20 lakh and Rs 70 lakh in the United Kingdom, company officials said today at a conference call for analysts.
Prices will double if the models are sold in India through direct imports as completely built-up (CBU) units since they will attract import duties of 114 per cent.
The company, however, did not specify the timeframe for the launch but said the numbers derived from the two brands in India may be low.
Analysts believe that India is a developing market for luxury automobiles with global luxury brands like Porsche, Mercedes, BMW and Audi already here. Sales of luxury car brands (priced above Rs 40 lakh) in the first five months of 2008 have already exceeded 2007's whole-year numbers.
The launch of JLR will certainly be a positive step for Tata Motors, which is increasing its market base internationally even as it explores markets like China and Russia, said analysts who were part of the conference call.
In the UK, Jaguar mainly sells four models including X-Type, XF, XJ Series, XK Series, in estate, saloon, open-top and coupe forms. Land Rover sells four models including the Defender, Discovery, Freelander and Range Rover.
Ford Credit has committed to finance the two brands in various markets across the world for 12 months. To supplement this, Tata Motors has signed up with financing companies overseas to supply credit once Ford Credit's term is over.
Tata Motors paid Ford $2.3 billion for JLR early this year. The company had raised $3 billion in the form of bridge loans from a clutch of banks.
The company intends to repay the loan through a Rs 7,200-crore rights issue later this year, the issue price of which will be decided at a later date.
