Jaguar Land Rover to Supply Tata’s SUVs With Small Engines image

Jaguar Land Rover might supply Tata Motors with engines to help the automaker deal with the lack of cutting-edge technology.

It’s been a while since Tata has been struggling with sluggish sales in its home market, due to perceptions of archaic products, which are uncompetitive and unreliable. Jaguar Land Rover announced it might supply Tata with its diesel engines and small 2-litre 4-cylinder petrol, which the company is currently developing in the UK. These engines might reach some of Tata’s SUVs, as this is the segment with the highest success in the Indian market.

“We are open for synergies but if we look at the segments we operate in, there is not much scope for outright joint product development,” said Ralf Speth, CEO, JLR. “But in terms of technology, engines… we can have commonalities. We can deliver engines to them for sure, including the smaller ones that we are developing.”

Currently, Tata’s SUV range, which includes the Aria, Safari and Sumo, are fitted with big engines, some of them surpassing 2,000cc. During the 2012-2013 fiscal year Tata’s sales have dropped 24%, falling to the 5th place in February behind Toyota in the passenger vehicle sales in India.