Tata, JLR to co-develop engines

    Tata-JLR to jointly develop engines in India.

    Published On Jul 20, 2011 07:00:00 AM

    2,034 Views

    Tata, JLR to co-develop engines

    Tata Motors and Jaguar Land Rover are planning to jointly develop engines and further strengthen synergies between the two companies. A statement, confirming the integration, has been made by Ratan Tata, chairman, Tata Motors.

    The joint development program will see manufacturing facilities being set up both in India and the UK. Tata Motors is also considering options for assembly and localisation of select products in China, which has become an important market for the company.

    Both, Tata Motors in India and JLR in the UK, have extensive product development plans for cars, off-road vehicles and commercial vehicles, powered by regular and alternative fuels, as also electric and hybrid vehicles, to meet future fuel efficiency and low emission requirements.

    Developing engines in-house and an engine sharing programme will improve the economies of scale. The jointly developed engines will be used for high-end Tata products and newly developed smaller entry-level JLR products. The new range, slated to be a four cylinder design, could be around or less than 2-litres in size.

    As far as the location of the new engine plant is concerned, as reported earlier by Autocar India, Jaguar Land Rover is likely to set up an engine manufacturing plant in India. This plant will be a “carbon copy” of a new engine plant which JLR is set to start building in the Midlands, UK in a “few” months from now. “The new plant will manufacture engines of up to 2-litres”, says our source.

    When contacted JLR’s spokesperson Paul Chadderton said, “Jaguar Land Rover has ambitious plans for growth and there are many matters related to that.” We learn that the initial investment in the engine plant could be in the range of 400 million Pounds.

    Currently JLR buys all its engines from Ford. Once the new plant comes up in the UK, the company may look at sourcing only bigger than 2-litre engines from Ford. The new India and UK plants are likely to have an annual cumulative production capacity of half a million units. The India plant will come up only after the UK plant is up and running.

    Copyright (c) Autocar India. All rights reserved.

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