JLR may use Tata engines in its cars

Jaguar-Land Rover, the British subsidiaries of Tata Motors, could soon be running on engines designed by Tata Motors' engineers, as the company is looking forward to increase its foot-prints in the Chinese market. It is believed that Tata Motors will use its engineering and technical expertise in manufacturing of these engines while the JLR's executives will be taking care of designing part.

Tata Motors, which is one of the largest car makers in the Indian market, has expertized in production of the low-cost engines and sells some of the most popular compact cars in India including Tata Nano and Tata Indica Vista. The main objective of this arrangement is to reduce expenses by using common parts in manufacturing of country-specific models of Jaguar and Land Rover for markets like China and Russia.

JLR sells more than half a dozen vehicles in the Indian market which includes Jaguar's XJ, XF and XK, and Land Rover's Range Rover, Discovery 3 and Freelander. The company is in the process of launching the plug-in hybrid variants of its existing portfolio cars by year 2013.

Tata Motors had surprised the market analysts by posting a consolidated net profit of Rs 2,571 crore in the first quarter of this year as  against a loss of Rs 2,505 crore a registered a year ago, and the JLR had a major contribution in this profit. Tata Motors’ total sales (including exports) of Tata commercial and passenger vehicles in May 2010 were 56,779 vehicles, a growth of 41% over 40,196 vehicles sold in May 2009. The company’s domestic sales of Tata commercial and passenger vehicles for May 2010 were 52,801 nos., a 38% growth over 38,392 nos. sold in May last year.