Tata Motors, India’s biggest automaker is facing some dire times in its home market, with falling sales and their Nano project turning to be a complete failure. Still, thanks to its JLR unit’s great sales, the company posted higher than expected third-quarter profit.
Net sales went up by 39 % to reach 635.4 billion rupees, which exceeded the 611.1 billion-rupee average of estimates, while net income increased almost three fold to 48.1 billion rupees ($771 million) from 16.3 billion rupees a year ago.
“We like JLR’s global luxury positioning and strong growth momentum,” Sorabh Talwar, an analyst at HDFC Securities Ltd., wrote in a note to clients. “We believe JLR is in an investment-led growth phase, driven by strong demand traction across geographies and products.”
Because of increasing demand for the jaguar F-Type and Range Rover models, Jaguar Land Rover’s own profit more than doubled to 619 million pounds ($1 billion), and proves to be a real asset to Tata Motors, which is now struggling to get its Indian business of Tata-brand cars, buses and trucks back on its feet.
“We expect demand to remain stressed as it’s choppy times and tough to forecast,” said Ranjit Yadav, the president of the passenger vehicle business at Tata Motors. “We expect a tough few quarters ahead.”
Jaguar Land Rover said last month that its overall global sales for 2013, thanks to high demand for its F-Type models, went up by a good 19 % to reach a record 425,006 units.