Land Rover plans greener SUVs to sustain sales

Land Rover, the luxury SUV brand whose customers include Tom Cruise and Queen Elizabeth II, needs to develop greener versions of all its models to sustain sales, the head of Indian owner Tata Motors Ltd. said in an interview.

The lightweight Range Rover Evoque, a sport utility-coupe crossover unveiled in London yesterday, must be followed by upgrades of the brand's bigger all-terrain autos producing less carbon, Tata Chief Executive Officer Carl-Peter Forster said.

"I'm not a supporter of the theory that if we have a small car then we can afford to make a large car," Forster said. "It's important that the bigger Range Rover is developed with more fuel efficient engines. That's the type of activity that will make sure it continues to be socially acceptable."

Tata's Jaguar Land Rover unit, which also makes Jaguar sports cars, is targeting "strong growth" as demand for high- end vehicles rebounds, the CEO said. The Evoque, priced from about 33,000 pounds ($50,000), aims to help lift annual sales to 300,000 units, up more than 50 percent from last year's total.

Forster, the former head of General Motors Co. in Europe who took over at Tata in February, cited a new diesel engine to be introduced in the 2011 Range Rover as an example of efforts to bolster the environmental credentials of established models.

The eight-cylinder engine delivers 309 brake horsepower, a 15 percent increase, while improving fuel economy to 30.1 miles per gallon, up 18 percent, according to company figures.