India's Tata Motors is developing two upscale SUVs for its Tata brand using technology from its luxury carmaking unit, Jaguar Land Rover, the Mint, a Delhi-based business newspaper reported.
Tata plans to launch a five-seat SUV and a seven-seat model in 2017, the report said, citing sources familiar with the vehicles' development.
JLR will provide performance and handling support for the SUVs, the report said.
Tata plans to sell 80,000 units of the SUVs annually in its home market and regions such as Southeast Asia and the Middle East, the paper said. The report did not say whether the SUVs will be sold in Europe or the U.S.
A supplier source told the paper that Tata's board has approved the SUVs as part of a product offensive through 2020. The decision to go ahead with the SUVs is a result of both Tata and JLR exploring synergies for sharing platforms, the executive said, adding that the project was not viable for a long time because of cost and positioning problems, which have now been overcome.
Jaguar Land Rover, which Tata bought from Ford Motor Co. in 2008 for $2.5 billion, builds luxury SUVs under its Land Rover and Range Rover brands.
Tata's plans to expand in global markets have been held back by quality-related issues that the cooperation with JLR is meant to overcome.