Looks like Tata Motors' British subsidiary, Jaguar Land Rover (JLR) is gearing up to challenge German and Italian auto giants in premium car segments. JLR is reportedly planning to buy a luxury marquee to consolidate its presence in the luxury car arena.
JLR is scouting for an upscale brand which is open to company's efforts to roll out electric vehicles and autonomous driving systems, reports Bloomberg. It will consider purchasing a luxury brand that will fit to its current portfolio, according to a source who is in the know.
Tata Motors currently gets about 78 percent of its revenue from the luxury brands. Jaguar is known for luxury sedans such as the XF and XJ while Land Rover range is known for luxury SUV with off-road prowess. The new brand under the radar should be a sports car or supercar focused to fit in the current portfolio.
A purchase would add to the $18 billion of total acquisitions involving automotive manufacturers this year globally, according to data compiled by Bloomberg. Any deal will be the first acquisition by JLR since Tata Motors bought the brands from Ford for about $2.4 billion in 2008. Representatives for Tata Group and JLR are yet to comment on the report.
Will it be Maserati or Alfa Romeo?
It needs to be noted that JLR's scout for a luxury brand comes soon after the reports in August that claimed Fiat Chrysler Automobiles (FCA) is planning to spin off both Maserati and Alfa Romeo as it did Ferrari back in 2016. The Italian-controlled multinational corporation is also exploring the option to sell the Maserati and Alfa Romeo brands.
The mission statement of Maserati is to build ultra-luxury performance automobiles with timeless Italian style. On the other hand, Alfa Romeo is known for sporty vehicles and has been involved in car racing since 1911. Both brands would fit well with the JLR portfolio and hence a possibility of these brands coming under Tata Motors' umbrella cannot be written off.
Source: Bloomberg
