India’s Tata Motors, the parent company of British luxury automaker Jaguar Land Rover, has announced it has modified negatively the prices, delivery and production goals for its premium division in China.
The company has long been supported by its subsidiary, which had seen very strong sales gains particularly in China, the world’s largest auto market. According to a main executive at the Indian company, the UK-based unit is now feeling the weakness of the once strong market and has trouble with depleting inventories. The country’s economic growth has gone down to the slowest gain in two and a half decades and consumer confidence has been further impacted by the recent stock market issues – with automakers from BMW to GM affected by the downturn. “Production and sales targets (for JLR in China) have been adjusted to reflect the slowing market,” commented Tata Motors finance chief C. Ramakrishnan after the automaker had a quarterly profit that almost halved from the same period last year.
Tata also opted to drop the price of the locally-produced Land Rover Range Rover Evoque sport-utility vehicle (SUV) by as much as 6 percent, while also delivering the Jaguar XE compact sedan with a lower launch price. The dropped prices and lower guidance comes just weeks after rivals such as BMW, GM, Ford and Volkswagen also announced they were lowering the prices of their Chinese models to fend off the slowing sales increases. The Chinese industry association also recently modified downwards its forecast for the entire year across the auto market, from a rise of 7 percent to just three percent.