Archive for July, 2010

Tata Motors on the Roll with Jaguar Land Rover Sales

Thursday, July 15th, 2010

The largest auto maker in India, Tata Motors, reports a dramatic 50% surge in vehicle sales.  Its Jaguar and Land Rover marques lead the rally with a whopping 72% jump in its UK markets alone.  The happy news boosted the company’s Sensex share prices to 2.2% in early Wednesday afternoon trading.  The rise contributed to the Sensex benchmark average which was up by 0.3%.

Amazing Turnaround

For a long time since Tata Motors acquired the Jaguar Land Rover division from ailing Ford Motors in 2008, at the height of the economic recession brought about by the collapse of the Lehman Brothers and Merrill Lynch, the JLR was proving to be a losing business proposition that almost made the Tata Group regret its purchase decision.  But over the last 12 months, the company has been reaping a whirlwind turnaround totally beyond the company sales forecast.

Jaguar’s luxury car sales grew 34% while Land Rover SUVs leaped 93% in May compared with the same period last year.  Jaguar car sales have seeing a steady month-to-month growth since the launch of its latest XJ sedan.

With the economic recession seeing some light at the end of the tunnel, but getting extended by the sovereign debt crises triggered by Greece early this year, it’s almost amazing that most of the JLR’s turnaround would be coming from Europe. Now what could be driving the sales from a continent gripped in a debt crisis at the moment?

Analysts opine that Tata Motors is benefiting from new model launches which have sustained the appetite for its luxury cars in the high end markets considered more immune to the recession. Mumbai-based brokerage firm Ambit Capital observes that “The new launches are especially helping Jaguar. And Land Rover is a strong brand by itself. Overall, there has been no negative volume traction yet despite the looming crisis in Europe.

Going Forward

Europe and the UK account for more than 50% of Tata Motors total export sales.  The new model launches are expected to sustain market demands for the few more months remaining in 2010 but it is not certain what the long term market prognosis will be with the looming debt crisis.  Many market analysts are still hopeful any adverse impact on the economy will not dampen or erode the luxury car markets.

While Tata Motors stock more than doubled in the last 12 months, it has lost 8.8% last month as the manufacture of the world’s cheapest car, the Nano, has been battling rising cost of raw materials and domestic competition.

India to Assemble Land Rover Freelander

Thursday, July 15th, 2010

India’s largest automobile manufacturer Tata Motors plans to start local assembly of the Land Rover’s Freelander towards the end of 2010. Its Pimpri car manufacturing facilities near Pune is being retooled with the right machineries for assembly of the Land Rover model.  Its Jaguar Land Rover subsidiary plans to launch these locally assembled Freelanders by the middle of 2011 for the local markets.

Retrofitting the Local Factory

It was earlier learned that the same factory near Pune was being used by Mercedes Benz for assembly of some of its cars but have since transferred to its Chakan factory in Pune, leaving it free for the JLR to take over for its Freelander assembly.

Industry sources have intimated that Tata Motors is expected to begin trial assembly and production in December after investing around Rs 1.5 billion to retrofit the former Mercedes Benz factory.  The redesigned factory will have a capacity of 20 Freelanders per month but Tata Motors plan to assemble other cars under the Land Rover brand.

Industry experts are one is saying that the local assembly of the Freelander will have positive impact on its profitability to Tata Motors.  With cheaper labour cost, it means higher profit margins as the company has no plans of reducing the price tags of the local produced SUVs.

A First of its Kind

This is the first time that Jaguar Land Rover will have a local assembly plant outside of its factories in the UK.  The company remains undecided on whether to use the locally assembled Freelanders for its export markets.  But industry experts have opined this is the way to go with China as another option for its car manufacturing ventures.  Considering the increasing affluence of the Chinese middle class, there would be a much higher demand in China.  Tata Motors is seen to realize the cost benefits with imported CBU in India reaching 110% duties and taxes while CKU is only 40%.

The Freelander currently competes with the BMW X3 as well as the Audi Q5 for the mid-market segments for SUVs.  The Freelander currently has a sticker price of Rs 346,900 in Mumbai.  Domestic sales data is rather sparse by Mumbai’s Jaguar Land Rover office has sold 242 Land Rover cars for the 2009-2010 period.

It was in 2008 when Tata Motors acquired the Jaguar Land Rover marque from struggling Ford Motors. For a while, the JLR division continued to hemorrhage but the last 18 months have seen it reap significant profits as the marque reaped a 72% surge in sales in its UK markets recently.   There are currently four JLR distribution outlets in India with a recent Jaguar XJ outlet launched.

Enjoying the LANDROVERmax Festival

Wednesday, July 14th, 2010

Britain’s iconic 4X4 off-roader gets a toast with the LANDROVERmax, dubbed as “UK’s ultimate festival for Land Rover lovers.”  The event scheduled for the month of August, welcomes all types, models, colors, shapes and sizes of the 62-year old all-terrain, all-weather- all purpose 4X4 utility vehicle that is known as the father of the modern day sport utility vehicle or SUVs.

A Long Weekend for the Event


The LANDROVERmax event is expected to take place on a weekend stating on a Saturday, August 28 up to Monday August 30.  Day tickets cost £14 if purchased on any of the event days for adults, but if you get them in advance, it will only cost £10.   The long weekend promises to be a lot of fun combining camping, muddy entertainment and caravanning at the Stoneleigh Park, Warwickshire. There will be a parade of classic Land Rovers over the years and will include demonstrations of Land Rover owner and driver skills such as winching, off-roading and stunt driving.

Event Activities


Visitors to the event are enjoined to come in with their Land Rovers of whatever vintage and style and include modern day Range Rovers, Discovery and Freelanders.  They will have the rare opportunity to maneuver their own Land Rovers over an off-road terrain specially designed by the Land Rover Company and featuring what organizers promise to be an “exciting and challenging” course through wooded forests and hills.  For Land Rover owners who don’t want their prized possession soiled, this may not be for them.

The off-road course will each be one-hour sessions and will cost participants £12 per course which include the benefit of expert Land Rover marshals deployed to offer advice and assistance on the proper handling the Land Rovers through the tricky circuitous terrain.

The editorial team of the Land Rover Monthly publication will be on hand at all times during the sessions to provide off-road restoration assistance such as vehicle repairs and mechanical advice as well as showcasing some of the Land Rover vehicles featured in its magazine.

An alternate activity of Land Rover fans will have tent-pitching on the side or taking along a Land Rover caravan for three to six nights starting at £20 per night.  This is a value bargain at it already includes the entry ticket price to the LANDROVERmax shows.

Land Rover Lease Creates S4C Scandal

Tuesday, July 13th, 2010

When does a simple £1,000 a month lease on a Land Rover SUV spark some scandal?  When it’s made by a Television station that’s pleading poverty. Executives of the Welsh television channel S4C (Channel 4 Wales) went under fire from its audience after the station leased a Land Rover Discovery for its Welsh language program Cefn Gwlad.

S4C anchor man Dai Jones will be using the leased SUV for visiting farm locations for his S4C program. He also hosts a couple of other programs for the station, Rasus and Fferm Factor.   It is estimated that he makes about £185,000 annually from these programs.

An ITV Wales spokesman says that “We ensure that the most cost effective and economical ways are followed when purchasing goods and services. This was the case for the long term hire of a suitable vehicle for the services of the programme Cefn Gwlad, a countryside programme that offers challenging filming locations around Wales throughout the year.”

An Insider Comments

A station production insider called the Western Mail to say that “It is a crazy waste of money to have leased a vehicle at £1,000 a month.  

It’s true Dai travels all over Wales to visit remote farms of the countryside, but that doesn’t justify leasing a Land Rover Discovery. Any car will take you to a farm. If it’s a rocky terrain, you can use farmer’s tractor.”

“S4C is pleading poverty and telling production companies they will have to tighten belts. What sort of message does this send out? They should use the money they get more wisely.”

Funding Cuts Notwithstanding

S4C funding comes directly from the Department for Culture Media and Sport in London. Since being established in 1982, the station has benefited from generous funding increases with grants tied with inflation.

But after the Conservative/Liberal Democrat coalition came to power last month, with Jeremy Hunt as the new Culture Secretary, there have been concerns whether its inflation-adjusted funding will continue.  S4C already took a “voluntary” funding cut of £2m for 2010, leading to speculation that the station will no longer enjoy immunity from future public sector funding cuts.

A senior TV industry insider intimated to the Western Mail: “S4C must be careful not to give the impression that it uses public funds unwisely”.

Jones, 66, was already a TV celebrity, hosting a family quiz show Siôn a Siân, when he took over the Cefn Gwlad shortly after it started airing in 1982. He also hosts a Sunday gala program for the BBC Radio Cymru, the Ar Eich Cais.  Seen as a larger than life personality, Dai Jones is also a tenor, having won the riband prize from the National Eisteddfod back in 1970.

A New Updated Range Rover for 2011

Monday, July 12th, 2010

Tata-owned Jaguar Land Rover has made same significant upgrades to the 2010 Range Rover models for next model year.  Expect the new 2011 Range Rover to have at least two major core enhancements – a more powerful diesel engine and an all new 8-speed automatic model.

Revamping the Engine

The Range Rover SUV brand has always sported two engine variants, one petrol and another diesel.  The well-regarded 3.6 litre V8 diesel engine already morphed into a heavily re-engineered 3-litre version in the V6 diesel that was adopted for 2010 Land Rover Discovery and Range Rover Sport models, including the Jaguar XJ and XF models with improved fuel efficiency and reduced CO2 emissions.  This time, the V8 goes into another revamp allowing it to overtake the V6.

The V8 capacity is now increased to 4.4 litres providing 313 horsepower and a torque of 700 Newton-metres.  In addition, its combined cycle fuel economy gets improved to 30.1 mpg, making this model the first Range Rover to breach the 30 mpg limits in official road tests.  At the same time, CO2 emissions fall by as much as 14% though still on the heft side at 253 grams per kilometre.

ZF 8-speed Automatic Transmission

The diesel engine gets mated to a new 8-speed automatic transmission gear train which, like the previous 6-speeder, is sourced from the German gearbox specialist ZF.  BMW has been using the same ZF 8-speeder on its flagship cars and SUV for a number of months now and Jaguar Land Rover is only too pleased to take the hint and play catch up even if the gear ratios make little sense on the road.

The new gearbox/engine allows the Range Rover diesel model to accelerate to 60 mph in 7.5 seconds and reach 130mph on the highway.

In the meantime, the current supercharged 5-litre petrol engine remains unchanged and will be offered for the 2011 model year along with the improved diesel model.  It will continue to use the ZF 6-speed transmission gearbox.   Both petrol and diesel models, however, will get an improved Terrain Response system exclusive to the Rover SUV line.  It brings greater ease and manageability for less experienced Range Rover drivers to set its 4X4 drivetrain system to match any type of off-road conditions.

The new 2011 models will have small cosmetic changes as well as new equipment add-ons.  Moreover, a specially accessorized 40th anniversary limited edition in Autobiography Black will be offered next year to celebrate the launch of the Range Rover name in 1970.

  • Basket
  • Contact Us
  •  
All rights reserved 2009 McDonald Landrover
Terms and Conditions | Privacy Policy | Contact Us | Sitemap