In a surprise move, Tata and Mahindra have evinced interest in buying Landrover and Jaguar. For M&M, Landrover will fit into their idea of transforming themselves into a global SUV player, and can also gain access to Landrovers advanced body-on-chassis technology. This could catapult M&M into the league global SUV makers. The key question is whether M&M has the finances to revive Landrover and secondly, does it have the capacity to take on other SUV players like Humvee, Mitsubishi and GM, who much bigger.
Tata showing interest in these two brands seems weird largely because both brands are luxury brands. While Tata has been interested in increasing its presence in Europe, it is unlikely that this can be fuelled by either Jaguar or Landrover. Both these marques are niche lifestyle marques and lack products like the VW Polo/Golf, which can clock volumes. This acquisition though will give Tata access to technology for its SUV business. But the important question is whether this is the best way to gain access to technology? With Tata’s manufacturing capabilities and cost advantages, it might be prudent to look at other avenues, which might be cheaper.
Tata showing interest in these two brands seems weird largely because both brands are luxury brands. While Tata has been interested in increasing its presence in Europe, it is unlikely that this can be fuelled by either Jaguar or Landrover. Both these marques are niche lifestyle marques and lack products like the VW Polo/Golf, which can clock volumes. This acquisition though will give Tata access to technology for its SUV business. But the important question is whether this is the best way to gain access to technology? With Tata’s manufacturing capabilities and cost advantages, it might be prudent to look at other avenues, which might be cheaper.
