Tata-owned Jaguar and Land Rover (JLR) has posted a draft worth 4.5 billion pounds to cut costs. The draft is to cut down on rising emission costs and due to the market slowdown in China, the company's biggest automobile market, and the project is known as Leap 4.5.
According to The Sunday Times, the British luxury carmaker will scrutinise every area of spending within the company. The three billion pounds a year capital budget for research and development, and for new plants have been spared.
Jaguar and Land Rover has made 2.6 billion pounds profit last year after the British car manufacturing company was bought by Tata Motors from Ford in 2008. JLR employees around 35,000 people and build 5 lakh cars a year.
JLR has spent around 11 billion pounds on new cars, on its manufacturing facility in China and India, and to overhaul the three facilities in the UK itself.
The British luxury carmaker has shifted to Aluminium from steel, to increase the mileage efficiency of its vehicles, but to meet pollution and environmental norms, JLR needs expensive upgrades to its models. JLR has not revealed any more details about its cost-cutting plans yet.