When Ford sold Jaguar and Land Rover to Tata Motors for $2.5 billion, the auto industry was in rough shape. And it didn't help that the luxury combo pack didn't exactly have a lineup full of fresh rides.

Only four years have past since that historic sale, but the industry is in much better shape and new vehicles like the Land Rover Evoque and Jaguar XJ have seemingly done wonders for the luxury brands. In fact, Tata's investment may be in much better shape than most anyone would have thought. According to Bloomberg, analysts predict that an Initial Public Offering could show that the brands are worth a combined $14 billion.

That's a monumental return on investment, and there are plenty of reasons for the lofty estimate. Tata reportedly earned $2 billion off JLR in 2011, and sales are at all-time highs. The brands are also expecting major growth in China and Russia, and Tata has promised to double its investment in new products. Tata has also pledged 40 new or refreshed models in the next five years, which is likely more new metal than some full-line manufacturers would be willing to promise.

But while JLR is apparently worth an estimated $14 billion, it appears that Tata isn't quite ready to issue an IPO. Company spokesman Debasis Ray told Bloomberg in an email that Tata is planning to fund the brands through internal cash accruals.


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    • 1 Second Ago
  • 15 Comments
      Avinash Machado
      • 2 Years Ago
      Tata has done a much better job managing them than Ford did.
      50 AKA Ferrari
      • 2 Years Ago
      Yep they have done a wonderful job. I wish they would have bought Saab.
      Mike
      • 2 Years Ago
      I wish I bought some stock of Tata when I had the chance. I feel almost as dumb as Ford, almost.
        • 2 Years Ago
        @Mike
        [blocked]
      Jameskey
      • 2 Years Ago
      "Only four years have past* since that historic sale" *passed
      Teleny411
      • 2 Years Ago
      Mr. Tata is a shrewd businessman!
      BG
      • 2 Years Ago
      Fascinating. GM and Ford both bought "premium" brands and ran them ineptly, then sold after losing billions and billions. Tata bought two brands at fire sale price, ran them well and now may make billions.
      Travis Miles
      • 2 Years Ago
      I still stick by my concerns. They have JLR valuations going for better than Mercedes and BMW. What happens as the Pound increases against the Euro and the Dollar? What happens as the dollar decreases and they have to go in the commodities market? What happens when they have to design all new engines to meet compliance? What happens when they try to issue debt? What happens when reality catches up with China? They already have a glut of housing.I still say that if this rumor has any basis it is because TATA wants to unload this off their balance sheets and onto another person's BS. 9 time out of 10 it is hurting their margin and hurting their own ability to issue debt and equity.
      Tstag
      • 2 Years Ago
      Actually Travis Miles couldn't be more wrong. JLR have not closed any factories since TATA took over. In fact they kept all 3 UK plants open and are building a new engine plant in the UK. All 3 factories are now at capacity and TATA is applying for planning permission to expand at least 2 factories. They are also aiming to build 1 in China and 1 in Brazil whilst expanding production in India. The Chinese in particular can't get enough of Land Rover, they go crazy for the brand there. Which makes Fords decision to sell possibly one of the worst decisions in the companies history.
        • 2 Years Ago
        @Tstag
        [blocked]
          BG
          • 2 Years Ago
          The acquisition of Saab was not a bad idea, and the creation at Saturn was brilliant. But subsequent execution strategy, and product development was inept and incompetent.
      Siddharth
      • 2 Years Ago
      "Range" Rover Evoque
      Travis Miles
      • 2 Years Ago
      That would be one prospectus I would read. I have not been following this but I would want to know how they dealt with the union, which is worse to me than the one people here love to hate, UAW. The cost of those antique factories that have more overhead then profit it seems. We all know that neither brand is a good source of quality, mostly due to the union and the cultures unwillingless to forgo those horrible factories, namely Castle Bromwich and Midlands. Any way, I suspect the union had to succumb based on the environment of Eurozone. And I would suspect they either closed Castle Bromwich or severly idled it to save cost. If Tata made a profit from them its only because Castle Bromwich is off the table somehow. Also, I would like to see how they are recognizing provisions for JLR. Its just sooooooooooo many reasons I can't believe those numbers. This is the environment that is able to place value on Social Apps that do nothing and produce nothing and is based off whims, so 14 billion of anything is erroneous to me. Besides, a JLR IPO does not make since we you already have a TTMT stock issue. The only way it makes sense is if they are trying to put those JLR cost off of their balance sheet and are pulling the oke-doke on everyone.
      CarCrazy24
      • 2 Years Ago
      Ford should have kept them...Jag and LR were already on their way up, guess they were eager to shed all their other brands. Glad to see they're doing well, I love the Evoque
      Postcard
      • 2 Years Ago
      Based on the last paragraph in this article it would appear that the answer to the question posed in the headline is 'No". All a bit of a fairy tale really. What's next, "Is AOL relevant?"
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