The demand for luxury vehicles is rising in China and upcoming markets. Tata Motors Ltd., Jaguar Land Rover owner, reported an increase of 18% in its fourth-quarter profit.
The automaker, based in Mumbai, reported a net income increase from 22.3 billion rupees per year to 26.3 billion rupees, which equals $581 million.
Bloomberg compiled 19 analyst estimates, the average of which showed a 26.9 billion rupee profit.
The global surge in demand for luxury vehicles has prompted the need for Jaguar Land Rover waiting lists. To meet the need for cars in the U.S. and China, Volkswagen AG’s Audi division is hiring additional workers to expand production.
Tata Motors said in January that Jaguar sales in China rose about 50% last year, and Land Rover automobile sales more than doubled. Tata Motors sold over 26,000 cars in China, its third largest market. On its website, the company stated its plans to have over 100 Chinese dealerships by this year’s end.
Walter Rossini, who resides over $355 million, or 250 million euros in an India equity fund in Milan at Aletti Gestielle SGR SpA, states that Tata Motors’ primary focus is their international business. He noted that the company is doing exceedingly well not only in the U.S. and Europe, but also in upcoming markets, such as China. He also stated that the business might experience some demand slowdown in trucks for India, due to the dramatic rise in financing costs.
In June 2008, Tata shelled out $2.4 billion to Ford Motor Co. for the acquisition of Jaguar and the brand Land Rover. Tata plans to invest in the UK to the tune of 5 billion pounds in the years to come, said Carl-Peter Forster, Chief Executive Officer.
Tata will begin an assembly facility in the city of Pune, India, for the production of Land Rover vehicles.
Diesel & Motor Engineering, Plc, Sri Lankan Tata Motors dealer, started selling the Nano car on May 28. This vehicle is priced from $8,414, or 925,000 Sri Lankan rupees.
Last month, 10,012 Nanos were purchased from the automaker, giving it the highest sales after a 250,000-capacity factory opening. In April, the automaker exported 498 Nanos.
In November, Nano sales dipped to 509 units, a record low due to three cars catching fire and customer difficulties with getting loans. Once the company began offering easier financing and longer warranties, sales rebounded.