Tata Motors plans entry level Jaguar model

The Indian company bought Jaguar Land Rover two years ago and since then has seen both manufacturers perform well in terms of sales, and return to profitability.

Now the company is considering increasing volume sales in both its home market and the US and UK by building an entry level model for the Big Cat.

A Jaguar station wagon and roadster are also being planned by Tata, according to the company’s annual report.

Strong sales at Jaguar, boosted by the new XJ luxury saloon, and at Land Rover have pushed Tata shares up by five per cent and increased net profit in 2010.

Jaguar and Land Rover sold 20,000 more vehicles in the second quarter of 2010 than it did in the same period last year, and Tata Motors is now interested in using technology from the luxury brands to boost its own range of cars – including the ultra-budget Nano city car.

The move could result in some Land Rover production moving to India as early as next year to build models for the Chinese and other Asian markets.

The company hopes by mixing production, it will benefit from economies of scale and can make inroads into several emerging Asian markets.

This could lead to lower costs and lower priced entry-level models, something Chairman Ratan Tata hinted at in the company’s annual report.