Tata Motors and its British subsidiary, Jaguar & Land Rover, are working together on developing a new car for emerging markets. The two companies are trying to combine their core competencies – low-cost manufacturing and product innovation – to develop the car. The car is still at the concept stage of development. According to media reports, while the car’s platform will be designed by Tata Motors in India, JLR will provide technology inputs and work on internal engineering. The car is expected to be priced in the range of Rs 20-30 lakh. Tata Motors MD, PM Telang, told mediapersons that it was too early to talk about the project.

In the past year, JLR has set up purchasing offices in India and China to source relatively low cost components from the two countries. Tata Motors had earlier said that it would collaborate with JLR to share capabilities rather than components. The company is now planning to start assembling certain JLR cars locally.