The biggest market for luxury car brand Jaguar Land Rover is now China.
Tata Motors owned Jaguar Land Rover aims to sell 100,000 vehicles in China in 2013, Ralf Speth, who is the chief executive of the company said on Wednesday.
Tata Motors, which is the biggest bus and truck maker in India, expects the lean sales at home to run into 2014, after greater sales at the luxury Jaguar Land Rover unit failed to add much into the first quarter profit.
Quarterly profits actually fell 23%, mainly due to the sales drooping in India. Over the last few quarters, Tata morots has become reliant on the overseas sales from Jaguar Land Rover to try and offset the weak domestic demand, which has been affected by the sluggish economic growth and rising ownership costs.
In 2012, China overtook the United Kingdom as the biggest market for Jaguar Land Rover as sales in the country grew by around 71% to almost 72,000 vehicles.
Chief financial officer C Ramakrishnan said that the external environment is rather weak, especially for the automotive industry. Margins will generally be under significant pressure this year for everyone.
The company, which is part of the £64.6 Billion Tata group have said that net profit for the quarter through June was 17.26 rupees, which is the equivalent of $281 Million, in comparison to the 22.4 Billion rupees profit the company made last year.
Meanwhile. net sales for the company rose by 8% to 467.51 Billion rupees. Analysts have said that there is an expected average net profit of 23.4 Billion rupees, according to recent collected data.
Lets hope that Jaguar Land Rover sales can grow in India, the home country of it’s owner, Tata Motors.