Jaguar Land-Rover has not merely survived under Tata ownership, it has thrived in a way few would have believed possible in 2008 when Ratan Tata acquired JLR from Ford. It’s profits are soaring and has contributed 78% of the parent company’s profits. And investments and jobs in JLR’s UK operation are growing.
Tata Motors Ltd. Tuesday beat market estimates with a 41% rise in quarterly consolidated net profit, helped by robust sales at its U.K.-based Jaguar Land Rover unit and strong vehicle demand in its home market. India’s biggest auto maker by revenue posted a net profit of INR34.06 billion ($689.92 million) in the three months ended Dec. 31, compared with INR24.24 billion a year earlier. Nine analysts on average had expected a consolidated net profit of INR26.15 billion.
Sales rose 44% to INR452.60 billion from INR314.42 billion.
Shares of Tata Motors climbed as much as 5.5% on the Bombay Stock Exchange after the earnings announcement. They later pared some gains and closed 3.7% up at INR267.90, outpacing a 0.4% rise in the broader index.
New model introductions has aided a steady growth in demand of Jaguar Land Rover vehicles, especially that of the recently introduced compact sport-utility vehicle Evoque. Its focus on emerging markets such as China, Russia and India has also helped boost sales.
Tata Motors bought the financially beleaguered Jaguar Land Rover brands from Ford Motor Co. in 2008 for $2.3 billion. The luxury brands are now the biggest contributor to Tata Motors’ sales and profit. Net profit at Jaguar Land Rover soared 57% in the October-December period to GBP440 million, while sales surged 41% to GBP3.75 billion.
Sales of Jaguar Land Rover vehicles rose 37% to 86,322 autos, aided mainly by robust demand for the Evoque SUV. Tata Motors said it sold 32,000 units of Evoque until December. …
In India, the company managed to stay immune from a slump in car sales that has affected profit levels of several rivals. Car and SUV sales grew 33% to 85,963 units in the past quarter, when it also sold 131,220 trucks and buses, up 15.5%.
P.M. Telang, managing director of India operations, told reporters it expects vehicle sales to improve in coming months. “We expect to sell 10,000 units a month of the Nano minicar in the next two-three months.”
Meanwhile The Telegraph reports on the investments being made:
… JLR is building a new £355m engine plant in Wolverhampton to help meet demand for its cars and is also redeveloping its factory in Solihull. It has hired thousands of new employees over the last 12 months to launch new models and employs around 21,000 people in the UK. It is understood that the company is also exploring plans to double the size of its Halewood plant by developing on surrounding land.
Under Mr Speth and Ratan Tata, JLR is investing more than £1bn a year into research and development. It wants to launch 40 new vehicles in the next five years, including a Jaguar sports car.
Range Rover Evoque: image - Range Rover
Tags: India, Jaguar Land Rover, Range Rover Evoque, Ratan Tata, Tata Motor, UK
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