MUMBAI -- Tata Motors Ltd. on Sunday introduced the Jaguar and Land Rover luxury-car brands in India as the company tries to challenge BMW AG, Audi AG and Daimler AG in this potential growth market for premium vehicles.
The first showroom in the country in Mumbai will market models including the Jaguar XF, XFR and XKR sedans, as well as the Land Rover Discovery 3, Range Rover Sport and Range Rover sport-utility vehicles.
Luxury-car makers such as Daimler, BMW, Porsche Automobil Holding SE and Volkswagen AG's Audi brand are introducing vehicles in India to tap the country's growing number of millionaires. Shrinking demand in the U.S. and Europe also has led the auto makers to diversify into higher-growth markets such as China and India.
Agence France-Presse/Getty Images Tata Motors acquired Jaguar last year. Above, Chairman Ratan Tata and a Jaguar XF in Mumbai on Sunday.
"It is an exciting time to be entering the Indian market, a country with increasing affluence and an economy which is still growing," David Smith, Jaguar-Land Rover chief executive, said in a prepared statement. "We believe that the Indian market holds significant growth potential in the long term, and we hope to tap the demand for premium vehicles from discerning customers."
Tata Motors acquired U.K.-based Jaguar and Land Rover from Ford Motor Co. in June last year to gain access to new technologies and widen its reach in overseas markets.
But the global financial crunch took a toll on sales of Jaguar cars and Land Rover SUVs, especially in the U.S. and Europe -- which account for about 65% of Jaguar-Land Rover's total volumes.
Sales of Land Rover vehicles fell 40% to 120,000 cars during June 2008-March 2009, while Jaguar sales declined 4% to 47,000 cars.
Tata Motors posted a consolidated net loss of 25.05 billion rupees ($521.5 million) in the fiscal year ended March 31 amid lower sales at Jaguar-Land Rover and falling demand for its trucks and buses in the Indian market.
Even so, Mr. Smith said emerging markets such as India, Brazil, China and Russia offer strong growth potential for Jaguar-Land Rover vehicles. "We have been successful in the last three years in developing our business in markets like China, Brazil and Russia," he said. "Already India has great potential and can offer incredible, new opportunities."
Depressed demand for luxury cars has forced Tata Motors to cut jobs at Jaguar-Land Rover and shut factories in the U.K. The auto maker also asked for a U.K. government guarantee for a £340 million ($561.9 million) loan sanctioned by the European Investment Bank for Jaguar-Land Rover.
Mr. Smith later told a news conference that Jaguar-Land Rover may cut more jobs if global demand for automobiles remains weak.
"During the current economic slowdown, we have to take several stringent measures to reduce labor costs," he said.
He said labor unions at Jaguar-Land Rover are aware that more jobs losses may occur. Talks with the unions are under way, he added.
Ravi Kant, vice chairman of Tata Motors, also said Friday that Jaguar-Land Rover may shed more jobs in addition to the 2,000 job cuts planned until December. The two brands currently employ a total of 15,000 workers, predominantly in the U.K.
Tata Motors doesn't have an immediate plan to assemble Jaguar-Land Rover vehicles in India, Chairman Ratan Tata said.
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