Tata Motors to benefit from JLR's focus on lower end luxury products?

Jaguar Land Rover, the fourth largest luxury car maker in India, will be focusing on the lower end of the luxury car segments with a strategic view of increasing volumes and market share in India. With the new strategy Tata motors aims to consolidate its position in the domestic market by entering tier 2 and tier 3 cities while it will also focus on improving the after sales services.

Tata Motors has not been able to penetrate the Indian markets for its UK based JLR due to lack of entry level products in the luxury segment even as competitors like Mercedes, Audi and BMW have been en-cashing on this opportunity.

Led by growth in sales of Discovery Sport and Jaguar XE, JLR has been able to command a market share of 9 per cent in the Indian luxury car segment. The company is likely to improve its dealership number from 23 to 26 while focusing on tier 3 cities like Nagpur and Raipur. 

Currently JLR markets five cars  which includes Jaguar XE,XF,XJ,Discovery Sport and Range Rover Evoke.

With increasing sales on the domestic models, Tata Motors may well be the auto stock to look out for out-performance. 52 w high for the stock is at 470 and the stock has generated a modest 7 per cent return over a 1 year period.