Tata Motors reported a 10 percent rise in third-quarter profit on Wednesday thanks to strong global performance of its premium subsidiary Jaguar Land Rover.
From July through September, Tata’s net profit was 21 billion rupees ($387 million). Sales rose 19 percent from a year earlier to 441.1 billion rupees ($8.1 billion), thanks to strong demand for Jaguar and Land Rover vehicles, especially in China, which makes up for over 20 percent of Tata Motors’ global sales.
Jaguar Land Rover paid a maiden dividend to Tata Motors of $240 million, which helped Tata Motors report a stand-alone profit of 8.7 billion rupees ($160 million), up from 1 billion rupees a year ago.
Tata sales in India have been hit by poor macroeconomic conditions. Tata has also been spending on developing new models and marketing. Among the new products planned for the Indian market are a CNG version of the Tata Nano in the first half of 2013, followed by a diesel version.
Sales of Tata vehicles increased by 5.8 percent from a year earlier to 223,655 vehicles, while wholesale sales of Jaguar Land Rover vehicles jumped 14 percent to 77,442 vehicles. Car sales for Tata Motors have been particularly weak, and the company has been losing market share even as it gains in the commercial vehicle segment.