Focus shifts to Tata’s branding of JLR

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With the much-awaited Jaguar-Land Rover deal expected to take shape this week, the buzz of what Tata is planning to do with the two brands is picking up.

“It is definitely a positive move for Tata Motors. But we need to wait and watch as to how they integrate the two brands,” said Mohit Arora, senior director, JD Power & Associates, Singapore. The organisation provides consultancy to auto companies on product quality and market.

He added that while Land Rover is best fit for Tatas considering that the major does not have strong hold in the SUV segment, Jaguar was an area of doubt since the Tatas have never been into the luxury segment.

“Will it be called Tata Jaguar or whether the Tatas will keep the two brands as independent divisions is something we need to see,” Arora said, expressing doubt about the feasibility of integrating the brands, considering the legacy of the two brands.

According to analysts, integration is the biggest challenge for Tatas as the company’s passenger vehicles are still struggling to make a global impact.

Said Abdul Majeed, who leads the auto practice at PricewaterhouseCoopers, “They are established brands and Tata will see how it can leverage them. Nobody wants to give away the already established legacy.”

The first Jaguar car featured in 1935 while Land Rover hit the roads in 1948. The two brands were purchased by Ford Motor Company Limited – in 1989, Ford acquired Jaguar for $2.5 billion and in 2000 bought Land Rover for $2.75 billion.

Indicating that there was not a big market for Land Rover, Majeed said, “The company may try to revise the market.” On how Tata would be looking at promoting the brands in India, he said, “The company already has an established network.”

The top five markets for Land Rover are the UK, the US, Italy, Russia and Spain. For Jaguar, the top five markets include UK, USA, Germany, Japan and Italy. In 2007, 226,395 Land Rovers were sold and in case of Jaguar, it was 60,485. During January-February this year, 32,102 Land Rovers and 5,783 Jaguars were sold.