There were many who were excited when Tata Motors acquired two global brands Jaguar and Land Rover from Ford last year. However, the Indian auto maker now seems to be struggling with its Jaguar Land Rover business. In fact, Tata Motors posted an annual net loss of Rs 2,505.25 crore during 2008-09 fiscal year. The falling demand for Jaguar and Land Rover contributed a lot to this huge loss.
The Indian automakers experienced a net loss, even though the company’s income last year increased to 70,938.85 crore, a sharp rise from Rs 35,660.07 crore income in the previous year. Well, I am not sure whether it was a right decision to buy Jaguar and Land Rover at a time when global auto market was struck by economic recession across the world.
Tata is now gearing up to make some quick cash in through its much-awaited ‘people’s car’ Nano which is dubbed as world’s cheapest car. Tata received considerable amount of orders for Nano and the company is now planning to launch an upgraded version of Nano in European and US market in order to capitalize on the economic recession. Tata should also take some realistic initiatives to make its Jaguar Land Rover divisions profitable.