Home » Articles
Car Articles
Read articles on cars and car industry. Get fully updated on all information related to cars. Read exciting happening in the Indian and Global Car industry, tips to help you and more...
Old Articles
Tata squirms under EC norms
All is not well with Tata Motors after it took over Jaguar and Land Rover, the iconic British cars. While earlier it was the most complicated buyout of brands from Ford by Indian car manufacturer. Tata motors is facing problem to launch the cars in European market. The reason is the high emission levels of Jaguar and Land Rover.
The European Commission has proposed higher emission norms and has adopted a proposal to reduce carbon emission by 19 percent. The proposal was passed on December 19 last year. The proposal was laid down with an aim to meet Koyoto protocol which recommends the reduction of average carbon emission from passenger cars from the current 16 gm/km to 130 gm/km by 2012. The legislation will come into effect from 2012.
However, after the successful execution Tata Motors was jubilant. With the introduction of such norms by European Commission, the Tata may find it tough to drive the two iconic cars in Europe. Tata had brought the two car brands for a price of $2.3 billion dollars in March. Tata Motors had no presence in Europe and JLR is its first foray into the mature European car industry.
So far, the JLR best fuel efficient car is the X-type with a emission of 149 gm/kms, which is above the stipulated norm. The other cars have a higher emission levels.
The company is working at reducing the emission norms by as much as 18 percent over the next few years. They are planning to introduce alternative fuel technology like the Bio-fuels and hybrids. The Jaguar will be developed as light weight aluminum car, which will result low fuel emission. The company is making an investment of 700 million pounds to make the Jaguar and Land Rover complaint with EC norms. It is also researching on new environment friendly technologies.
When the EC norms will come into effect in 2012, Tata Motors will be bound to face a penalty of Excess emission premium. That means a penalty of 20 euros per gm/km will be levied in the first year, 35 euros in the second year, a whopping 60 euros in the third year and later 95 euros in the fourth year.
As the carbon emission of Jaguar and Land Rover is several times higher than the proposed limit, Tata needs to act fast. If Tata want to capture European market, it will have to come up with more fuel efficient cars to meet the emission norms. Failing to do so, Tata will have to pay a heavy price for acquiring JLR. Unfortunately, Ford still holds the right over the engine technology used in Jaguar and land Rover.
