Tough road ahead for Tata's Jaguar-Land Rover ride in Europe
The emission issue has the potential to become a major roadblock for Tata Motors and its two new British marques. The Indian carmaker plans to invest £700 million in new technologies.
After Ford’s exit, Jaguar and Land Rover are heading for tough times in Europe as the two companies can’t merge their average carbon dioxide (CO2) emissions of fleet with the smaller Ford models. Teh tow car companies will likely be heavily taxed when the stricter regulations will be applied in 2012. Tata Motors plans to invest £700 million to to develop and implement new environmental technologies and introduce new manufacturing materials.
While JLR could have offset higher CO2 emission of its fleet by balancing it by Ford’s fleet of light low-emission cars, the same is not possible under Tata Motors as it does not sell cars in Europe. Tata Motors also faces a proposed penalty, or the "excess emissions premium", that companies have to pay for going over the stipulated curve. A premium of 20 euros per gm/km has been proposed in the first year (2012), gradually rising to 35 euros in the second year (2013), 60 euros in the third year (2014) and 95 euros by 2015. Even the most fuel-efficient car sold by Jaguar, the X-Type, currently emits 149 g/km, which is well above the stipulated norms. In 2015, the X-Type would be taxed over around £1,500. The situation appears catastrophic for a Range Rover Sport. For example the Porsche Cayenne Turbo would be £8,000 over taxed in 2012.