Tata Motors Shifts Top Gear — Thanks To Jaguar Land Rover

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In the year 2008, Tata Motors purchased one of the most iconic British brand - Jaguar Land Rover (JLR) - from Ford. From then on it has been no turning back for the homegrown conglomerate especially in the automobile sector.

It has been eight years since the acquisition of JLR, known for their expertise in off-roading vehicles. JLR contributes nearly 85 percent of the total revenue of Tata Motors, signifying its role in its parent company.

Tata Motors apart from JLR does a modest business in India and globally, despite that, the company appears to be an attractive bet in the automobile industry.

All this performance comes from the UK-based subsidiary, Jaguar Land Rover. JLR has been focused on diversifying its product portfolio by offering new models at shorter intervals as well as expanding the Jaguar brand in the sports utility vehicle (SUV) segment from the sedan.

This focus has paid off with 22 percent volume growth reported by JLR in the 12 months to August 2016, this is three times that of the premium car industry growth.

In various geographies, it has gained a market share of 100 - 200 bps with its expansion of global footprint has helped it indeed. To counter slow economy and the limited scope to increase prices, JLR has been building new product cycle.

For the future, JLR will be launching a wide range of vehicles such as Range Rover Evoque Convertible, next generation Discovery and a new Range Rover Sport in the coming years.

Currently, JLR's vehicle portfolio age range is 3.8, with the new models lined it will reduce to 2.9 years by 2018. Many analysts believe and expect annual growth of 14.5 percent for JLR between the period of FY15 and FY18 compared to less than 5 percent for its competitors.

The SUV market has caught the imagination, not just in India but the world over and Jaguar just fits in with its F-Pace model. The retails sales of JLR grew by 28 percent in September, thanks to F-Pace's contribution of 7,221 units.

Apart from the F-Pace, sales of other models grew by 13 percent which shows that other models are not suffering due to incremental sales of the F-Pace. In the coming months, with shorter life of vehicle launches and expansion of the market for JLR, Tata Motors is in top gear.

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