Caused primarily by a slowdown in the Chinese market, JLR’s net income dropped to $764 million (48.72 billion INR) while the operating profit in the latest quarter decreased to $1.27 billion (81 billion INR). Parent company Tata Motors mentions Jaguar Land Rover’s revenues decreased by 7% to $7.7 billion (491 billion INR) so the company has seen better days.
The problems in China have diminished the company’s local income by 49% as a result of plummeting sales after delivering 21,920 in the latest quarter, representing a 33% decrease. As a consequence, Tata Motors-owned Jaguar Land Rover sold 1% fewer cars, totaling 114,905 units. On the plus side, deliveries in Europe went up by a significant 28% to 28,878 cars.
In a statement made by Tata Motors, sales of the Range Rover Evoque in China have decreased because they are currently increasing local assembly while the local production and sales targets have been adjusted to the new slowing market. As a move to boost sales, Tata has lowered the Evoque’s starting price in China by 6% while the launch price of the Jaguar XE sedan has also been lowered, but exact details are not available at this point.
While the economic downturn in India have greatly affected sales of Tata Motors in recent years, these poorer results were offset up until recently by excellent sales of Land Rover SUVs and Jaguar sports car, especially in China which have boosted the company’s profits, but it seems that won’t be the case anymore in the world’s fastest growing market which is starting to show signs of slowing down.
Despite the unfavorable conditions in China, the estimation made by Tata Motors refers to a record of more than 500,000 units sold at the end of this year which would represent a serious hike compared to 2014 when they shifted 462,678 cars. JLR estimates this will be possible thanks to new products such as the Land Rover Discovery Sport and the aforementioned Jaguar XE. However, in the first half of the year, sales went down by 0.5% to 239,212 units so it will be interesting to see whether Tata’s estimations will come true.