Tata Motors today announced that the assembly of JLR vehicles at its plant in Chennai has started, a move aimed towards expanding principal production for the British luxury car marquee in India. The move is also likely to support JLR in consolidating its position within the Indian market and realigning output with local demand.
The Chennai line will produce some Jaguar and Land Rover models, with the plant used for production of premium vehicles from Tata’s established lines. Analysts say local assembly could facilitate better integration into supply chains, lower import reliance and delivery times, as well as have a positive impact on cost structures.
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Manufacturing has been gradually stepping up at Tata Motors since it bought the maker of Jaguar and Land Rovers from Tata Group in 2008. The choice of location to manufacture JLR vehicles in India is part of a global strategy for local production and to feed off the surge in demand for luxury cars in the country. The Chennai facility, which is already an export and production hub for a number of Tata models will add special tooling and quality procedures associated with premium-segment assembly.
Local manufacturing is also expected to come with tariff benefits and incentives under India’s automotive policies, thereby making JLR-brand vehicles more affordable for the domestic buyer of some models. The company is also expected to create job opportunities at the Chennai plant and among its suppliers and associated-Industries in the region as a result of the decision.
The new came amidst renewed interest in luxury brands with Indian consumers showing an inclination for premium cars that come well loaded with technology and performance. Tata Motors and JLR officials have said they are committed to delivering vehicles with the brand’s renowned design and craftsmanship standards underpinned by high-quality engineering, performance, and luxury when built in India.
No details about the first models that will be assembled are known, but industry sources suggest this process could involve both SUVs, as well as sedans, under a phased rollout at Chennai plant. Localisation of assembly activities is also expected to spur further export opportunities to other regional markets.
Auto analysts said the decision could help cement Tata Motors’ position as a significant player in India’s premium vehicle market and underscore larger shifts toward more regionalised production for the global automotive industry.
