Jaguar-Land Rover reduces no. of platforms to cut costs

Tata Motors JLR (Jaguar and Land Rover) will now be manufacturing more vehicles on fewer platforms as the company cuts off cost and plans to simplify its manufacturing lines. An automobile platform is understood to be a sharable set of components common to different automobiles. Platforms when reduced expand flexibility and help to use the plant in a better way and on a bigger scale. This way, the time of product development is also reduced with the help of a particular combination of engineered components.  In the coming two-three years, Tata Motors group will have 4 platforms instead of the nine platforms it currently has. A company spokesperson was quoted saying that reducing complexity across vehicle lines, including where appropriate sharing elements of vehicle architecture-brings advantages in a number of areas of which cost is one. Jaguar Land Rover continuously seeks chances for the improvement of efficiency throughout its business but does not comment on its future model plans.

With its UK subsidiary Jaguar Land Rover, Tata Motors is soon going to begin a joint development programme. This subsidiary  was acquired by Tata Group  in the year 2008 for vehicles, platforms and engines. As per Mahantesh Sabarad, an analyst, the rationalization of platforms for different models will support the company lessen the cost of Research and Development. The capex plans of the company stand at around £800 million. In the coming two years, this will substantially increase because of the rigorous emission standards in Europe. The latest upsurge in the sales of luxury cars in US and Europe has made JLR increase its sales target to 2.4 lakh units in 2010-11. The car maker also intends to introduce a few new models. The Evoque can possibly be introduced in the mid of the year 2011. Evoque is a small Land Rover.

Tata motors has also registered a  profit of Rs 1,979 crore for the first quarter in comparison to the loss of Rs 334 crore in the same period last year. Several facts like reduction in incentives, new models’ launches like Jaguar XJ, shift in product mix towards higher margin vehicles etc helped in improving the top line to £2262 million. It also supported the company to have an operating profit of £339 million. In the recent months, the demand for luxury cars has increased. This raised demand has lead BMW, Audi, Mercedes and others to increase guidance. JLR is also expected to carry on at a high capacity.

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