Jaguar Land Rover Sees Higher Incentive Costs Amid CompetitionBy
Tata Motors net income increases 42% after one-time gain
Jaguar Land Rover quarterly profit before tax jumps 49%
Jaguar Land Rover will have to continue to offer higher incentives to win customers as competition intensifies after Tata Motors Ltd.’s luxury unit posted slower growth in deliveries.
A one-time gain helped Jaguar Land Rover post a 49 percent jump in profit before tax of 595 million pounds ($774 million), its Mumbai-based parent said on Wednesday. The profit includes a one-time credit of 437 million pounds related to the company’s pension plans. Net income at Tata Motors climbed 42 percent to 31.8 billion rupees ($498 million).
The luxury unit expects the incentive and cost pressures on profit margins to continue in the current financial year, Chief Financial Officer Kenneth Gregor said in its annual report last month. Deliveries at Jaguar Land Rover grew at a slower 4 percent pace in the quarter because of weak demand including for Land Rover’s Discovery Sport and Range Rover Sport SUVs. Sales expanded 13 percent in the three months ended March 31.
The automaker also said costs related to introduction of new models will continue. Jaguar Land Rover unveiled its new Velar SUV this year and plans to introduce its first all-electric Jaguar I-Pace vehicle.