Jaguar Land Rover Setting New Records as Parent Tata Slumps
Premium vehicle unit of Tata setting record profits, sales as parent company struggling
In a scenario somewhat reminiscent of Chrysler's recent success while Fiat still struggles in Europe, Jaguar Land Rover, the premium vehicle unit of Tata Motors, is setting sales and profit records while its parent company is struggling in India. Tata's second-quarter net income gained 71 percent to $564 million, most of it attributable to Jaguar Land Rover, which posted quarterly profits of $815 million, up 66 percent for the quarter, according to a Bloomberg report. Retail sales for Jaguar Land Rover increased the most in four quarters, bolstered by high demand for new Jaguar and Land Rover models, including the F-Type roadster and Range Rover Sport. Quarterly sales for Jaguar increased 57 percent to 20,024, and Land Rover sales increased 15 percent to 82,620.
Although China is Jaguar Land Rover's biggest single market, the country's GDP is expanding at a slower pace than in years past. However, Ralf Speth, JLR CEO, said he sees plenty of potential upside for the brands, as they're still selling a much lower relative volumes than other premium brands in China.
In contrast to Jaguar Land Rover's rude health, sales for Tata declined 29 percent for the quarter to $1.4 billion, the sixth consecutive quarter of declines for the company. Tata currently holds only 9 percent domestic market share compared to the dominance of Maruti Suzuki, which has more than 40 percent market share in India.