In order to share the burden of high investments in developing EVs at JLR, Tata Group has approached Geely and BMW in hunt of a partner
Tata Group has finally said that it’s actively looking for partners for the ownership of Jaguar Land Rover in order to share the burden of high investments in electrification and save on costs. So far, the largest conglomerate in India has approached China’s Zhejiang Geely Holding Group Co. and BMW AG in search of a partner.
Shared ownership of the ailing British carmaker with a Chinese company would help JLR in the Chinese market, where it marked losses of USD 3.9 billion earlier this year. On the other hand, a partnership with BMW would help further solidify the existing ties to develop powertrains and EV technologies.
It may be noted here that Tata Group purchased Jaguar Land Rover, the makers of some of the most alluring premium cars and SUVs in 2008, for a whopping USD 2.3 billion. Recently, N. Chandrasekaran, chairman of group holding company, Tata Sons Ltd., said that while the Indian conglomerate is open to forming partnerships for JLR, it doesn’t intend to sell off the British car marque anytime soon.
A sales slowdown in the auto sector on a global scale has led to additional pressure on low-performing carmakers in different parts of the world. For example, earlier this year, Ford Motor Co had to tie up with Volkswagen AG for shared development of electric powertrains and self-driving cars.
On the other hand, PSA Group, the owner of Peugeot, Opel and Citroen, recently agreed to combine with Fiat Chrysler Automobiles to together form the world’s fourth-largest carmaker company by volume.
Similarly, even Tata Group has been looking for partners for the ownership of JLR. However, the major challenge that it is currently facing is to reduce the financial struggles of the British car market. Recently, the conglomerate started providing the brand a shot in its arm with an equity infusion of USD 910 million.