Tata Motors plans to expand in the Chinese market, focusing on luxury SUVs.

“We see great potential for further growth. We sell our entire vehicle line-up in China and will grow by expanding sales and introducing new derivatives and models, some designed specifically for China, ” said a top company official.

As the Chinese market is mainly based on the luxury cars, Tata plans to expand in this sector and bring the company back to health. Jaguar Land Rover, owned by Tata, saw China as its third biggest market after the UK and North America, but during the April-June quarter China managed to surpass the US and the UK becoming the biggest market for the automaker, accounting for 22% of sales.

In 2011 JLR sold 42,063 vehicles in China and in June 6,407 units, up 93% from the same period last year. In 2008 Tata bought JLR from US Ford Motor for $2.3 billion, part of its plan to expand beyond Asia. Currently JLR continues to expand in China and it recently formed a joint venture with Chery Automotive for 17.5 billion yuan, expected to roll off the first car in 2014.


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