As Tata Motors’ stock went down this month, its U.K. luxury-car producer, Jaguar Land Rover, stated that it will reduce its sales target and prices in China due to a slow demand in the world’ biggest auto market.
The carmaker also modified its output to stabilize its retails prices and offer help to JLR dealers in China. Therefore, the brand cut $8,000 from its initial selling price for the Evoque sport-utility vehicle starting the 1st of July. Jaguar Land Rover did not provide any details regarding the new sales targets and supply cuts.
These measures follow a slow pace of industry wide expansion projected by the China Association of Automobile Manufacturers and a profit warning issued by BMW AG’s Chinese joint venture partner. After deliveries in China went down 23% for JLR, the carmaker, which gets around a quarter of its sales from there, stated that it is adjusting supply to its dealers to help reducing the inventory pressure.
“Even though we have faced sales performance challenges in the first six months of 2015, we are making efforts to enter a new sustainable phase. We are working with our dealer partners to jointly overcome challenges,” an official statement from Jaguar Land Rover announced.
In spite of recently opening its first plant in China, which allowed the automaker to sell its cars locally and avoid the import duties, Jaguar Land Rover registered a decline in sales in the country. Moreover, Tata Motors’ shares went down 4% to 385,95 rupees, which is the lowest for the brand since March 2014.
By Gabriela Florea