A study on Market Size of Tata- Jaguar &

Landrover in Indian Market

ABSTRACT

The market size for premium segment cars are growing for the past 10 years in INDIA. Super
luxury cars are eyeing the Indian market because there is a huge potential and craze. BMW, Mercedes-
Benz and Audi have setup their plants in India and sell their cars to Indian market as well as export
to other countries . M/S TATA MOTORS market share in the car segment is increasing day by day.

They have entered into the premium segment market by acquiring the stake of JAGUAR & LAND ROVER
from M/S FORD MOTOR COMPANY. This is a great achievement for an Indian company and taking the
Indian Business ahead in global scenario. This paper provides the market size for these brands
in Indian market .The research involves secondary data of existing premium brand customers
who will be interested because most of them are innovators.

Introduction

Jaguar and Land Rovers award-winning vehicles 3, Range Rover Sport and Range Rover. Further
are well known around the world. Jaguar has details, including specifications, are available on
become one of the worlds leading producers of the new Jaguar India website (www.jaguar.in)and
beautiful fast cars. Land Rover produces the worlds Land Rover India website (www.landrover.in).
most versatile all-terrain vehicles, combining
Jaguar Land Rover has confirmed Tata Motors as
refined luxury with a true breadth of capability.
its exclusive importer and the world-class Ceejay
The exciting new range of premium luxury vehicles House facility in Worli, Mumbai, will offer a wide
available for the Indian market will include the range of both Jaguar and Land Rover vehicles, with
Jaguar XF, XFR and XKR and Land Rover Discovery a dedicated showroom section for each brand. It

*Faculty, GRG School of Management Studies, Coimbatore. 115

aims to establish a benchmark experience in luxury status symbol for most of them and the customers
car sales in India, with plans to develop the dealer want to be different among the lot. Luxury is
network throughout 2009 and 2010. becoming essentials. In the last decade air travel
was considered as luxury but now it is very
Mr. Ratan N. Tata, Chairman of Tata Sons and Tata common. Jaguar & Land Rover are known for both
Motors, said: We are extremely pleased and safety and status. Businessmen travel a lot and
proud to introduce the Jaguar Land Rover brands their concern is safety. Road traffic is hectic in cities
in the Indian market and give the discerning Indian so the customers opt for these luxury cars to have
customer direct access to these prestigious brands, a pleasure drive.
accompanied by a parts and service network. We
hope that they will delight customers in India just Literature review
as they have done in markets the world over. Indian market was untamed for all these years in
super luxury car segment. All global brands are
Mr. David Smith, CEO of Jaguar Land Rover, said:
much interested to enter into Indian market
Jaguar Land Rover is delighted to have officially
because of the success by Mercedes-Benz, BMW&
opened our first showroom in India. It is an exciting
Audi in recent years .M/S TATA MOTORS are doing
time to be entering the Indian market, a country
very well in the automobile market by introducing
with increasing affluence and an economy which
many models to cater the customer needs. M/S
is still growing. We believe that the Indian market
TATA MOTORS have a market share in passenger
holds significant growth potential in the long term,
car segment like A, B and MPV segment. Their
and we hope to tap the demand for premium
presence was not there in the D-segment. They
vehicles from discerning customers.
were planning to enter into this segment so that
The purchasing power of Indians is in an increasing they can improve on their market share. It is a
trend. The rich is becoming richer,day by day. milestone for TATAs by which they can upgrade
Though the world is affected by global recession, their company. Also, they can become as Indian
Indian businessmen are safe because of their multi national company to acquire global brands.
savings. Nowadays the mindset of the customers This gives more confidence for other Indian business
are changing and they want to enjoy each and to dominate in the world market. This move will
every moment. The youth icons are becoming produce a positive impact on Indian economy.
sport lovers and they expect more sporty cars than Very few authors and writings have investigated
the classic cars. Super luxury cars have become as customers about market size of luxury cars and

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 A study on Market Size of Tata- Jaguar &
Landrover in Indian Market

much of this work is focused on customer loyalty Upper D segment is the luxury car segment and
(Rosecky and King 1996) and brand switching. The the prize range of these cars will be above 25 lakhs.
major research focus has been on low priced Jaguar & Land Rover comes under the upper D
segment car ranges rather than the luxury segment. Buyers liking towards these cars are
segment in which choice between brand concept because of its perfomance, horsepower, stylish,
and individual choice of potential buyers play a sporty and status. Some of the buyers are
great role. Most of the research was done on the interested about the country of origin of the brand.
world market. Many authors did the study on the Most luxury cars hold their marques as a flagship.
customers from the different parts of the world, To enhance the brands power, most luxury car
expect India ( Keller 1993 ). marques have stretched their brand upward into
a new segment. For example Land Rover have
Objectives stretched into a segment called upper sports utility
The basic objective of this study is to find out the vehicle. Most current owners of luxury cars tend
market size for Jaguar and Land Rover in India. to have purchased a car previously; the customer
has potentially developed an attitude towards it.
Also, an idea of setting up a 3S facility across India
Here an attitude becomes an evaluating judgment
to improve the sales and service.
(desire or not desire) based on prior or present
Methodology experience such as previous satisfaction from
dealers or products and services (after sales and
For the completion of this study secondary data
warranty), driving experience and socio-economic
were used from various websites of premium
status of customers.
segment car manufacturers. How can luxury
automobiles be segmented The car segment is The luxury cars need to be part of its owners life.
divided into A, B, C & D segment. It needs to provide its owner the practicability
SEGMENT A Small Cars
both in functional and perceptual point of view.
That is why BMW and Mercedes-Benz have
SEGMENT B Lower Mid Size Cars
dominated the luxury markets globally. Everything
SEGMENT C Upper Mid Size Cars
is made to facilitate the users and also highlight
SEGMENT D Premium Luxury Cars
the owners sense of prestige and status wherever
SPORTS UTILITY Lower and Upper SUVs
VECHICLES (SUV) it travels. The frequent use of the cars will stimulate
MULTI PURPOSE Lower and Upper MPVs the perception of a luxury life the owners gain from
VECHICLES (MPV) their possession.

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 JOURNAL OF CONTEMPORARY RESEARCH IN MANAGEMENT
April - June, 2010

Most of the research is done in the areas of Sales Figures for Premium cars in Coimbatore
customer satisfaction, consumer behaviour and market (2008)
market size in the developed countries like US, UK
BMW Mercedes- Audi Total
& U.A.E.Since TATA is the importer of India it is
Benz
essential to do a study on the market size in an
Indian city. Coimbatore is a cosmopolitan city 40 55 10 105
coming under the state Tamil Nadu, also known as
The Market size for these high-end cars are around
Manchester of South India. The people of
7000 units per annum. If Tata Motors, set more
Coimbatore always have the passion for cars, and
dealer network across India then they can capture
it has produced many rallists. Most of the people
a substantial amount of market share in the
come from business houses. Entrepreneurs are
coming years. As a start-up jaguar and land rover
growing in various businesses like textiles, motors,
may steal around 300 units for the first year. Indian
pumps, and foundry CNCmachines, garment, and
market is growing so the percentage of sales for
software, hotels, constructions and paper mill.
the high-end cars is in increasing trend. So there
Always luxury cars are considered as status symbol
will be no loss for any of the manufactures of these
for these businessmen in the city. They always
high-end cars. The Market Size will grow in the
travel more to develop their business and
coming years due to the increasing purchasing
concerned more on their safety.
power of the Indian businessman. So each of the
PRICING OF JAGUAR AND LANDROVER manufactures will share the sales. As a start-up,
the market size for jaguar and land rover will be
JAGUAR Starts from
66 Lakhs to 1 Crore around 10 units in coimbatore market. Already, 3
cars are running in the roads of coimbatore (RTO
LAND ROVER Starts from
50 Lakhs to 1 Crore figures,
RANGE ROVER Starts from
Number of Dealers across India
70 Lakhs to 1 Crore
BMW 13
Sales Figures for Premium Cars in India (2008)
AUDI 12
BMW Mercedes- Audi Total
Benz Mercedes-Benz 32

3100 2750 1070 6920 Jaguar and Land Rover 1

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Recommendations and suggestions volatility on the financial and commodity markets
If Tata Motors increases the dealer networks across poses the risk of even greater uncertainty. The
India like other premium car manufacturers then market situation has therefore also deteriorated
they can increase their market share considerably sharply for the automobile industry. The situation
.In India each state has different policies and on most of the worlds emerging markets remains
procedures for registering the vehicles so it is very robust. It is likely, however, that the dynamic
difficult for an individual to bring the car to other growth rates registered on these markets in recent
states of India. As of now only one dealer have years are in an increasing trend because of the
been appointed in Mumbai. Demonstration, saving economy practiced among Indian
delivery and after sales will be a problem for the businessmen. Tata motors have the experience in
customers of other parts of India. Also, these high automobile industry for years so it is easy for them
end cars require the technical expertise to do to build up the strategy with their existing network
service which is not available in other parts of India. across India. Jaguar Land Rover is a popular global
Tata Motors must plan for 3S facility in metros and brand and it has created a lot of enthusiasm in
cosmo politan cities. If they set the 3S facility in minds of customers. Customers are in fact
major cities then automatically the sales will expecting and it is a long wait for them. Tatas
increase. The customers also will become slogan says Quality and Trust and it is there in
confident because of the availability of showroom, the minds of the customers always.
spares and service. Territory coverage and sales
References
promotion activity in the specific market will
increase the market size. The other premium Websites of premium car segment
segment manufacturers have their dealerships at
www.mercedes-benz.co.in; www.audi.in;
each states or metros and two tier cities. Tata
www.bmw.in; www.jaguar.in; www.landrover.in;
motors may follow the same way.
www.tatamotors.com .
Conclusion
Tse,D &Gorn.G (1993),An experiment on the salience
Business conditions have deteriorated further for
of country of origin in the era of Global brands,Journal
the premium segment over cars over the past
of International Marketing, pp 57-60.
months. The escalation of the financial crisis will
spill over to the real economy has increased the Motor Industy and Research Association(1997),The
risk of a worldwide recession. A significant level of Emerging Asian Auto Markets pp 325-328

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