Tata Motors, India’s largest carmaker and the parent company of British automaker Jaguar Land Rover saw its quarterly profit missing analyst estimates.
The Mumbai-based company reported that because its Jaguar Land Rover unit had a slower delivery growth rate, net income dropped 7% to 32.9 billion rupees ($533 million) in the quarter ended September 30. Accordingly, the posted financial result compares to the 45.9 billion-rupee average of 37 analysts’ estimates compiled by Bloomberg. The profit made by the premium division also slowed to 450 million pounds ($705 million) from the 507 million pounds result reported during the same period of 2013.
According to Ken Gregor, chief financial officer of the Jaguar Land Rover unit, “you can’t always continue to grow every quarter, quarter-on-quarter at the same rate,” as the luxury division saw sales increasing in the quarter by 7.9%. That compares to a 22% jump saw in the same period last year – with deliveries dented by a decline on the North American markets. Tata’s profit was further dragged down by the ongoing slump in demand seen at home, in India.
According to the JLR official, the recently opened plant in China, a 130,000-unit-a-year facility, should ramp up production in 2015 and together with the recent introduction of the Land Rover Discover Sport and Jaguar XE sedan, growth should restart next year.