Indian automotive heavyweight Tata Motors got a big boost on Wednesday as reports of possible release of new Range Rover poured in.
Shares in Tata Motors surged five percent Wednesday, following a growing anticipation about an increase in sales when the India based multinational releases a new model of its flaghship Range Rover in the month of October.
As per the analysts, the new model will be lighter compared to previous SUVs and will accommodate smaller engines, while retaining the same look and feel.
J.P.Morgan expects it to be lighter by 420 kgs less than the models currently in the market. In addition, it is going to cost around GBP 71000 onwards, as per a recent press release.
"Successful launch of Range Rover could add significantly to earnings," hope experts at Jefferies, a global securities and investment banking group. It is being speculated that new model of the SUV will boost sales of the companies by as much as 10 percent.
Tata's purchase of Rover
Tata Motors became a major global player in the automotive industry in 2008 when the company acquired British Jaguar Land Rover (JLR) business for a whopping sum of US$2.3 billion. The sale got completed on June 2, 2008 and catapulted Tata into who's who of global business.
The debt loaded purchase had made Tata's ride somewhat wobbly as worldwide recession followed the deal closely, thereby denting the demand of this ultimate luxurious brand pretty heavily.
The company reportedly bled money for a while and had reported severe losses at that time. It has bounced back pretty well since then, jacking-up global sales and making smart profits.
Wednesday's reports will give plenty of satisfaction to the Indian behemoth's outgoing leader, the charismatic Ratan Tata, who has announced that Cyris Mistry will be the new group chairman.