- Registration time
- Last login
- Online time
- 1116 Hour
- Reading permission
Feb 22, 2012
FPJ BUSINESS DESK Mumbai
Domestic Auto major Tata Motors on Tuesday said it has finalised a joint venture partner for the proposed assembly plant for JLR in China and will double its investment to 1.5 billion pounds.
The formal announcement will be made as soon at the company gets approvals from Chinese authorities.
" We are awaiting the approvals from the Chinese government for our joint venture there and we are expecting it anytime from now," Tata Motors Chief Financial Officer C Ramakrishnan said.
He, however, declined to comment on a possible timeframe for the announcement, saying: " I cannot predict as to how soon it will happen... We are expecting it anytime from now." 'We will continue to invest in the JLR brands, both in terms of product development as well as in terms of technologies. As part of our focus on this business, we will be doubling our annual capital investment in this to 1.5 billion pounds," he said.
China is one of the largest markets for the companys British marquees Jaguar and Land Rover. Earlier, JLR had said it planned to produce more than 50,000 vehicles a year from a new plant in China employing up to 5,000 people.
Tata Motors India Managing Director Prakash M Telang said having an assembly plant in China is the best way forward for JLR going by the massive demand for its s. " A plant in China will help us meet the huge potential in that country," Telang said.
Since Tata Motors acquired Jaguar Land Rover ( JLR) in 2008, the company has been investing 700- 800 million pounds annually on the two brands, he added.
On the domestic front, Telang said Tata Motors is intensifying efforts to rev up Nano sales.
As many as 230 more exclusive Nano showrooms will be opened in the next 12 months, while already 120 such showrooms are already functioning currently, he added.
Explaining the rationale for the exclusive Nano outlets, he said: " Since the novelty factor for the car is over, we on hindsight realise that perhaps selling Nano and Aria together would have intimidated a genuine Nano buyer." In January, Nano sales stood at 7,723 units compared to 6,703 units in the year- ago period, up 15.22%. At the time of the Auto Expo, Tata group chairman Ratan Tata had admitted that Tata Motors missed an early opportunity to exploit the potential of Nano.
Asked on reports of launching the Nano in the Bangladeshi market soon, Telang said: " We have not finalised anything concretely on the Bangladesh entry." He also said Sri Lanka and Nepal were " natural" export markets for Nano. On his outlook for the current quarter and for the next fiscal, Telang CLINCHER: Land Rover Freelander II SUV are seen on the assembly line at the JLR plant in Pimpri in Maharashtra.
Jaguar Land Rover has seen massive demand in China.
said: " We see tough competition continuing in the heavy commercial vehicles and the passenger car segments but for the mid- to long- term I am very optimistic."