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Jaguar Land Rover sees profits leap

Jaguar land Rover (JLR) enjoyed a strong end to 2013 as profits more than doubled in the final quarter. The company’s profits rose to £842 million in the quarter running from October to December 2013, up from £404 million for the same period in 2012. Revenues for the quarter were £5.3 billion. The stellar performance was built on sales which rose by 27% in the third quarter of 2013 to total 112,172 units.

Jaguar land Rover (JLR) enjoyed a strong end to 2013 as profits more than doubled in the final quarter. The company’s profits rose to £842 million in the quarter running from October to December 2013, up from £404 million for the same period in 2012. Revenues for the quarter were £5.3 billion. The stellar performance was built on sales which rose by 27% in the third quarter of 2013 to total 112,172 units. The surge was led by strong sales of the Jaguar XJ and F models, along with the Range Rover Sport. JLR’s profits are propping up the performance of parent company, Tata Motors, which has revealed profits for the same quarter of £470 million. Ralf Speth, chief executive of JLR, attributed JLR’s excellent results to the quality of the company’s cars.

The Ford Motor Company sold JLR to Tata Motors in 2008 for £1.15 billion, in a deal that is looking increasingly like a bargain. Since then the Indian company has invested heavily in JLR, with expanded research facilities and new models. Across the whole year of 2013, JLR sold a record 425,006 cars. Its export performance was particularly strong, with increased sales in the US, China, India and Brazil. Tata Motors’ profits in 2013 were boosted by the sale of a South Korean subsidiary for around £200 million. Tata itself saw a rise in profits of 195% to beat industry forecasts but it continues to struggle in its domestic Indian market.

In India, rising fuel costs and high interest rates have directly affected car sales. In recent NCAP tests, the market was also hit when many popular Indian car models failed basic safety tests. The weakening Indian economy also saw a drop in truck and bus sales in the huge country. At the recent Delhi Motor Show, Tata Motors showed its first new models for four years. This was seen by industry observers as an attempt to reverse the recent decline in the company’s sales and fortunes. The recovery plan may have been delayed by the recent death in Bangkok of Tata managing director, Karl Slym. Following Mr Slym’s death, the company is being run by a panel led by Tata group chairman, Cyrus Mistry. The panel will continue on an interim basis to guide strategy and operations until a successor to Mr Slym is identified. JLR has previously announced that it will build its new XJ saloon in India.

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