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    Jaguar Land Rover will launch more new models to boost profits

    by V3Cars Team on Sunday, Dec 03 2017

    Iconic British luxury auto brand Jaguar Land Rover’s Indian parent company, Tata Motors has recently reported the company’s biggest profit increase in six quarters after the luxury brand started offering new products.

    Iconic British luxury auto brand Jaguar Land Rover’s Indian parent company, Tata Motors has recently reported the company’s biggest profit increase in six quarters after the luxury brand started offering new products.

    Tata Motor experienced almost a triple fold profit jump on the basis of a better product variety in the market. The Indian auto major’s net income was recorded at 24.8 billion rupees ($382 million) in the September quarter, which has jumped from the recorded profit of 8.3 billion rupees during the corresponding quarter last earlier, as per the company’s filing. Thus, the auto major has beaten the market analysts’ prediction of a much lower profit.

     

    Jaguar Land Rover (JLR) has experienced sales jump of 27 percent in the Chinese market, which the world’s largest car market and also JLR’s top market. JLR has witnessed great sales momentum in China which is also experienced by its competitors. The global auto majors have been giving out hefty discounts and launching a slew of new models in order to grab the buyers’ attention, post the Chinese government’s sales tax increased in the beginning of this year which put off the buyers from buying new cars in the biggest auto market in the world. After gaining good sales rate jump in China, the company is contemplating launching the more affordable Jaguar E-Pace SUV model in China along with various other international car markets in 2018.

     

    While speaking on the development, the Chief Executive Officer of Jaguar Land Rover, Ralf Speth said in the statement that the company will continue focusing on its strategic objective of gaining profitable and sustainable growth. He added by saying that Jaguar Land Rover has spent 1 billion pounds (equivalent to $1.3 billion) in order to add production capacity in the quarter. He further said in the statement that the company will be launching the Jaguar E-PACE, the new Range Rover plug-in hybrid and the Range Rover Sport in the next quarter.

     

    JLR’s retail sales witnessed a jump of 5.1 percent accounting to the sales of 149,690 vehicles. The company’s gross profit margin before interest, tax, depreciation and amortization was recorded at 11.8 percent, which also exceeded the estimated forecast of 10.6 percent by market analysts.

     

    Although Jaguar Land Rover’s extent in the market is smaller than the other luxury behemoths, its profit margins are now comparable with the likes of Mercedes-Benz, General Motors as well as Toyota Motor. As per the market experts, this has been possible because the company has been focusing on premium brands and new product offerings, both of which can reduce the scope of discounts while still getting good sales.

    However, this favourable condition in terms of profitability might not continue for long in the coming years, say the market experts. As per them, things might become more challenging as Jaguar Land Rover and the other luxury auto giants continue to invest heavily in platform architecture, engine manufacturing and new technologies without a clearly understanding which segments will be the most profitable in the fast changing market conditions.


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    V3Cars Team is the India’s most reliable source of all new launched & upcoming car news, updates & reviews.

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