No Plans to List Jaguar Land Rover: Tata Motors

Tata's had purchased Jaguar Land Rover from Ford in 2008 for $2.4 billion and it's managed to turn it around.

By Carandbike Team

1 mins read

Published on June 20, 2017

Highlights

Jaguar Land Rover saw a significant growth in the last financial year
Tata Motors bought Jaguar Land Rover for $2.4 billion in 2008
Jaguar Land Rover has launched an array of new products recently

There's a lot happening at Tata Motors from the beginning of this year, may bit be changes in leadership or building an entirely new brand. In fact the company has been also looking to forge some new ties which is why we see it announcing partnerships with Microsoft and in fact even Volkswagen. In the midst of the company shedding some fat and getting leaner, business wise, there were reports which suggested that Tata Group is considering an initial public offering of Jaguar Land Rover. Tata's had purchased Jaguar Land Rover from Ford in 2008 for $2.4 billion and it's managed to turn it around. However, a spokesperson of Tata Motors told Reuters that "There are no plans to list Jaguar Land Rover. There is no truth in those rumours." Tata Motors has shown significant growth in the last financial year and that's all thanks to Jaguar Land Rover. Tata Motor's cumulative passenger vehicle wholesales for financial year 2016-17 including Jaguar Land Rover (JLR) sales clocked 757,994 units, higher by 12 per cent when compared to FY15-16. Jaguar Land Rover alone dominated Tata Motors global passenger vehicles sales by selling over 6 lakh units in the same period. In fact retail sales went up by 54 per cent in April 2017 compared to April 2016 as Jaguar retailed 12,310 vehicles. The sales have been driven by cars like the F-Pace, XE as also the XJ. Jaguar Land Rover's revenue has grown seven folds after Tata Motors bought the company in 2008. In fact, Jaguar Land Rover will invest 4 billion pounds ($5.1 billion) in the financial year through March 2018 which will also see it build a new factory in Slovakia. It's not entirely a bad idea then to list Jaguar Land Rover for Tata Motors. Given the fact that JLR has shown great growth prospects, selling stock would help JLR to fund new car developments and also investments in connected-car technologies and autonomous driving systems.