30 Jun 2020
Posted in Automotive
Rationalization and electrification point way ahead for Tata-owned Jaguar Land Rover, says GlobalData
As Tata Motors gets closer to making making a decision on the strategic direction of its loss-making British premium vehicle manufacturer Jaguar Land Rover (JLR);
Calum MacRae, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:
“There are multiple options for Tata Motors to consider. First and foremost should be the rationalization of the Jaguar model line-up with an accompanying adjustment to UK manufacturing capacity (its urgency added to by continuing Brexit uncertainty).
“Its UK manufacturing footprint now looks unsustainable and ending production at one of its three vehicle plants in the UK should be considered. Of these, Castle Bromwich has to be favorite for the axe. Already, JLR has stated that the plant won’t restart operations before August due to its COVID-19 induced shutdown.
“Second, turning the Jaguar brand into an all-electric Tesla competitor makes long-term business sense and seems to be the way the wind is blowing with the flagship XJ’s replacement destined to be electric only. This has long been rumoured as a strategic option for Jaguar and would solve one of the problems JLR has faced in the decline in popularity of diesel in Europe.
“Indeed, diesel’s penetration in Europe has fallen from over 50% in 2016 to under 30% so far in 2020. It is a problem for all manufacturers with a European presence but it is more acute for JLR with Land Rover, in particular, being more reliant on diesel than any other major brand.”