Jaguar is diversifying its range of vehicles by acquiring international automakers and tech firms. Its owner Tata Motors Ltd. has reportedly been holding internal consultations but no official announcements have been made yet. The luxury brand is said to be looking at other premium automakers and tech companies to support its electric vehicles and autonomous driving systems. Read the complete report from Bloomberg.
Jaguar Land Rover to Acquire Luxury Marques, Tech Firms
Jaguar Land Rover, the luxury unit of Tata Motors Ltd., is scouting for acquisitions of international automakers amid rising competition in the industry, people with knowledge of the matter said.
The company has been holding internal discussions on buying other brands to diversify the range of vehicles it sells, the people said.
Tata Motors Ltd. and Jaguar Land Rover have yet to comment on the issue. However, an insider claimed that the Indian-owned Tata Motors is willing to shell out monetary support for potential acquisitions. These future investments aim to keep JLR competitive.
As an example, speculations have mounted that JLR is eyeing Fiat Chrysler’s Alfa Romeo and Maserati. Since technology is becoming more and more important in the world of luxury marques, a partnership between the two is quite sensible.
Further, the luxury unit announced earlier that it was partnering with Lyft Inc. to work on autonomous-driving technology. JLR has reportedly invested $25 million in the San Francisco-based startup and is offering vehicles for rent to their drivers.
Jaguar is also selling its I-PACE electric sports car in 2018, which already has about 25,000 orders for it. With the recent developments, it would only seem logical for the luxury unit to acquire tech firms to reinforce its latest venture in electric cars and autonomous driving systems.
Future Acquisitions to Benefit Tata Motors
— BloombergQuint (@BloombergQuint) October 1, 2017
Tata Motors has made around $6.1 billion as of June this year. This makes it one of the biggest listed Indian companies, second only to Maruti Suzuki. The cash equivalents are a whopping 87 percent increase from the past year.
The Indian conglomerate reportedly gets 78 percent of its revenue from its luxury brands. The company is looking to use this additional haul to expand its business. Jaguar Land Rover appears to be providing the lion’s share of this revenue, as it doubled and tripled its sales volumes and turnover in the last five years. In fact, the unit is currently Europe’s fastest growing automaker.
The Future is Looking Up for Jaguar Land Rover
— EverCharge (@EverCharge) September 28, 2017
Tata Motors scared many when it purchased both Jaguar and Land Rover back in 2008. Yet, the premium brands have thrived over the years. In fact, they actually just surpassed the 600,000 annual sales mark. With its latest investments and plans of acquisitions, the future of this luxury brand is definitely looking up.
Jaguar Land Rover showcases its new electric models at the inaugural of its Test Fest event in London:
How will these potential acquisitions affect the automobile industry? Further, what are your thoughts on the matter? Let us know in the comments section below!
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