In a twist of irony, Jaguar Land Rover, the unit spun off from Ford Motor Company in 2008 as being an unprofitable burden to Alan Mulally's restructuring efforts, is now accounting for most of parent Tata motor's profits for this quarter. Tata's second-quarter net income increase of 71 percent to $564 million can be largely attributed to the success of the JLR unit. Jaguar Land Rover quarterly profits of $815 million were up 66 percent for the quarter, Bloomberg reports.
Retail sales for Jaguar Land Rover increased the most in four quarters, bolstered by high demand for new Jaguar and Land Rover models, including the F-Type roadster and Range Rover Sport. Quarterly sales for Jaguar increased 57 percent to 20,024, and Land Rover sales increased 15 percent to 82,620.
Although China is Jaguar Land Rover's biggest single market, the country's GDP is expanding at a slower pace than in years past. However, Ralf Speth, JLR CEO, said he sees plenty of potential upside for the brands, as they're still selling a much lower relative volumes than other premium brands in China.
In contrast to Jaguar Land Rover's rude health, sales for Tata declined 29 percent for the quarter to $1.4 billion, the sixth consecutive quarter of declines for the company. Tata currently holds only 9 percent domestic market share compared to the dominance of Maruti Suzuki, which has more than 40 percent market share in India.