28 February 2011

Tata Invests In Jaguar Land Rover

Research & Development (R & D) is an expensive part of car making today. Technologies are moving at a pace, safety now needs to be nanny like, emissions and fuel efficiencies are paramount, not to mention new market segments that you need to be in or miss out on growth.

When Ford sold Jaguar/Land Rover, R & D was about £400 million, this year (2011) under Tata it will be c. £1 billion. That is something like 10% of turnover for the marques. Jaguar has up to five projects on the go, while LR has to spend on upgrading its line up. Both also need to get alternative fuel vehicles on the road. The good news for Tata is that JLR is generating enough profit to pay for it all.

To cope with this expansion, JLR will hire over 2,000 people within next two years, an increase of over 11% globally. They currently employ 18,000 people worldwide and this will increase to more than 20,000 by 2012. JLR are on a roll.

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