The luxury car market is growing rapidly
Demand for luxury vehicles is increasing in China and the markets to come. Tata Motors Ltd., owner of Jaguar Land Rover, reported an 18% increase in its fourth-quarter profit.
The Mumbai-based automaker reported a net income increase of Rs 22.3 billion per year to Rs 26.3 billion, which is equivalent to $ 581 million.
Bloomberg compiled 19 analyst estimates, the average of which showed a profit of Rs 26.9 billion.
The global increase in demand for luxury vehicles has led to the need for waiting lists for Jaguar Land Rover. To meet the need for cars in the US and China, Volkswagen AG’s Audi division is hiring additional workers to expand production.
Tata Motors said in January that Jaguar sales in China jumped about 50% last year, and Land Rover car sales more than doubled. Tata Motors sold more than 26,000 cars in China, its third largest market. On its website, the company stated its plans to have more than 100 Chinese dealerships by the end of this year.
Walter Rossini, who resides more than $ 355 million, or € 250 million in an India stock fund in Milan at Aletti Gestielle SGR SpA, claims that the main focus of Tata Motors is its international business. He noted that the company is doing very well not only in the US and Europe, but also in the markets to come, such as China. He also stated that the business could experience some slowdown in truck demand for India, due to the dramatic increase in financing costs.
Investment in the UK
In June 2008, Tata disbursed $ 2.4 billion to Ford Motor Co. for the acquisition of Jaguar and the Land Rover brand. Tata plans to invest in the UK to the tune of £ 5bn in the next few years, said Carl-Peter Forster, chief executive.
Tata will start an assembly facility in the city of Pune, India, for the production of Land Rover vehicles.
Diesel & Motor Engineering, Plc, a dealer for Tata Motors of Sri Lanka, began selling the Nano car on May 28. This vehicle is priced at $ 8,414, or Sri Lankan rupees 925,000.
Last month, 10,012 Nanos were purchased from the automaker, giving it the highest sales after opening a 250,000-capacity factory. In April, the automaker exported 498 Nanos.
In November, Nano sales fell to 509 units, a record low as three cars caught fire and customers’ difficulties in obtaining loans. Once the company began offering easier financing and longer warranties, sales picked up.