Tata Motors has announced its plans to increase the investments in its Jaguar Land Rover (JLR) brand of cars and will double it to 1.5 billion pounds (Rs. 11,750 crore approximately). The JLR brands of the company have been experiencing favorable revenues and margins thus enabling it with a strong growth in the global arena. These brands have further helped the company mitigate the losses and low sales in its domestic market India.
According to Mr. C.R. Ramakrishnan Tata’s Chief Financial Officer, the company plans to double the annual expenditure on product development in JLR from the existing 700-800 million pounds (Rs. 5,500-6,200 crore approximately) in the past 5-6 years since 2007-08.
In the total profit earned by Tata Motors in the October-December 2011 quarter, 95 percent was contributed by JLR which had a profit margin three times of the company’s domestic operations.
