Jaguar Land Rover (JLR) is looking to start manufacturing operations in North America, confirmed Tata Motors' chairman emeritus Ratan Tata. "The company is indeed looking at North America as a location for another plant," said the former head of the group while speaking during an automotive summit in South Carolina. "Where they locate that plant, in which country or which state they locate, is something they will need to decide," said Tata, adding that he is not part of the decision-making process. Ratan Tata retired as chairman of the group in 2012 but continues to oversee the family-controlled group's philanthropic activities.
Outlook and implications
This is perhaps the first time that someone within in the Tata Group has confirmed that JLR is considering a production site within North America. This comes only weeks after a report which stated that the UK-based unit had received a visit from the state governor of Georgia to discuss the possibility of a facility being located there. The company is currently embarking on a global expansion of its assembly and production footprint outside the UK, with bases already on stream in India and now China. These will all help JLR circumvent the import tax regimes in these markets which make the cost of premium products exceptionally prohibitive and follow in the footsteps of its German rivals which have taken steps in this direction. With a US site, JLR would follow Daimler and BMW into the region – Audi is set to start production in Mexico next year – and would be closer to customers in one of its biggest global markets. Locating in certain southern states would also give it access to an advanced component supplier base as well as the possibility of subsidies and other incentives. Nevertheless, despite the comments, there are still said to be other options on the table, recent reports suggest that Austria and Turkey are also possible markets.
