Tata Motors plans to develop new JLR engines in-house

Carl-Peter Forster, chief executive Tata Motorsengines. There have to be one's own engine.
said that the Indian engineers will be working inRathore also commented that it is definitely a loss
designing the new Jaguar Land Rover engines.if seen from business point of view but the
This will be a long-term threat to Ford Motor Cocompany has always been prepared for this.
which is presently under contract to supply JLRForster clarified that the Indian engineers will be
engines.assisting in the redesigning of the Defender jeep,
In 2008, Tata Motors had bought JLR from Fordwhich is something of a British icon. He further
for $2.3 billion. According to the transaction, Tataadded that they are determined to come up with
Motors was supposed to buy vehicle componentsa modern-day Defender. Their team in India has
and technology from Ford. Forster quoted thatan expertise with off-road and 4x4 vehicles for
those contracts will start expiring around 2015 anddeveloping markets, said Forster.
that he intends to renew those contracts butAccording to Forster, Tata Motors' Indian
would now like to engineer new JLR enginesexpertise in engineering small engines could prove
in-house. There will be a combination of expertiseespecially helpful. Global demand for small engines
of the group's engineers in India and the UK.is also likely to grow as small engines become
Ford motors however did not comment on thismore powerful and fuel efficiency becomes more
matter. Deepesh Rathore, chief auto analyst atimportant, added Forster. Tata Motors is planning
IHS Global Insight in New Delhi, said that image isto assemble Land Rover Freelander next year for
very important in this matter. He also said thatdomestic sales in India.
the cars cannot keep on running with Ford