JLR needs 'major' cost-cuts

Jaguar Land Rover (JLR), the luxury unit Tata Motors bought from Ford Motor last year, needs “major cost-reduction”, as the global recession hammers demand for its vehicles.

The challenge for Jaguar Land Rover “will be to sustain operations through this difficult period”, Tata Motors Chairman Ratan Tata said in the company’s annual report for 2009-10.

“It will however call for a change from some of the traditional practices and a commitment to encourage change,” he added.

Sales of Jaguar cars, which range between Rs 15,91,091 to Rs 67,01,871, declined 20 per cent between October and March, while Land Rover sport-utility vehicle sales fell 51 per cent, Tata said in the report posted on the company’s website. Slumping demand has also pushed Bayerische Motoren Werke AG and Daimler AG, the world’s two-largest luxury carmakers, to post losses in the two quarters ended March.

The firm has also made “considerable progress” in identifying sources of components for JLR from India, Tata said.

The unit is also developing hybrid engines for Jaguar cars and Land Rover SUVs, while all future cars will be built with aluminum bodies to reduce weight.