Land Rover Slower Sales Growth Drags Down Tata Motors ProfitBy
Sales of Land Rover rose 4%, slowest pace in 3 quarters
Luxury-vehicle unit posts profit of 304 million pounds
Land Rover’s slowest growth in deliveries in three quarters dragged down profit at parent Tata Motors Ltd.
Net income fell to 22.4 billion rupees ($334 million) in the three months through June from 52.3 billion rupees a year earlier, Tata Motors said in a statement Friday. Profit at the Jaguar Land Rover luxury-vehicle unit declined to 304 million pounds ($401 million) from 492 million pounds.
Deliveries of Jaguar Land Rover climbed 16 percent in the three months through June, slower than the previous two quarters, as demand for its Range Rover models waned. Land Rover increased its U.S. spending on incentives and marketing promotions by about 53 percent in the first six months, according to researcher Autodata Corp.
The luxury unit’s sales in the U.K., Europe and North America expanded at a slower pace, while maintaining the rate of growth in China. Land Rover deliveries in the quarter gained 4 percent from a year earlier.
Shares of Tata Motors climbed as much as 4.3 percent. They traded at 514.70 rupees, or up 4.2 percent, as of 3:25 p.m. in Mumbai.
Jaguar’s deliveries surged 76 percent on demand for its entry-level XE sedan and the marque’s first sport utility vehicle F-Pace, both of which started selling in the U.S. in May. The British brand lowered its U.S. spending on incentives and marketing promotions by about 17 percent in the first six months, according to researcher Autodata Corp.
— With assistance by Manish Modi