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Tata Motors on the Roll with Jaguar Land Rover Sales

Thursday, July 15th, 2010

The largest auto maker in India, Tata Motors, reports a dramatic 50% surge in vehicle sales. Its Jaguar and Land Rover marques lead the rally with a whopping 72% jump in its UK markets alone. The happy news boosted the company’s Sensex share prices to 2.2% in early Wednesday afternoon trading. The rise contributed to the Sensex benchmark average which was up by 0.3%.

Amazing Turnaround

For a long time since Tata Motors acquired the Jaguar Land Rover division from ailing Ford Motors in 2008, at the height of the economic recession brought about by the collapse of the Lehman Brothers and Merrill Lynch, the JLR was proving to be a losing business proposition that almost made the Tata Group regret its purchase decision. But over the last 12 months, the company has been reaping a whirlwind turnaround totally beyond the company sales forecast.

Jaguar’s luxury car sales grew 34% while Land Rover SUVs leaped 93% in May compared with the same period last year. Jaguar car sales have seeing a steady month-to-month growth since the launch of its latest XJ sedan.

With the economic recession seeing some light at the end of the tunnel, but getting extended by the sovereign debt crises triggered by Greece early this year, it’s almost amazing that most of the JLR’s turnaround would be coming from Europe. Now what could be driving the sales from a continent gripped in a debt crisis at the moment?

Analysts opine that Tata Motors is benefiting from new model launches which have sustained the appetite for its luxury cars in the high end markets considered more immune to the recession. Mumbai-based brokerage firm Ambit Capital observes that “The new launches are especially helping Jaguar. And Land Rover is a strong brand by itself. Overall, there has been no negative volume traction yet despite the looming crisis in Europe.

Going Forward

Europe and the UK account for more than 50% of Tata Motors total export sales. The new model launches are expected to sustain market demands for the few more months remaining in 2010 but it is not certain what the long term market prognosis will be with the looming debt crisis. Many market analysts are still hopeful any adverse impact on the economy will not dampen or erode the luxury car markets.

While Tata Motors stock more than doubled in the last 12 months, it has lost 8.8% last month as the manufacture of the world’s cheapest car, the Nano, has been battling rising cost of raw materials and domestic competition.

Tags: Ambit Capital, Jaguar Land Rover, Sensex, Tata
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Land Rover Wins International Asian Business Award

Wednesday, April 7th, 2010

In recognition of its excellent sales turnaround performance with consistent results, the Jaguar Land Rover Company has been conferred International Asian Business of the Year (UK) at the Asian Business Awards celebration held recently to honour the maverick businesses across industries in the Asian markets.

The company was singularly praised for its remarkable sales growth in both the domestic and foreign markets of India as well as for the sound investment made by the Tata Group which acquired the then ailing prestige British marques from the Ford Motors just two years ago in 2008. To say that its performance was stellar was more an understatement especially when one considers the difficult economic conditions of the times.

The remarkable and consistently steadfast progress that Jaguar and Land Rover has made in its selling efforts despite a local and foreign that was less than conducive is clearly evident from the posted $59 million in profits for the month of February 2010 – a 60% improvement from the previous 10 months that showed an aggregate 16% decline reflecting the height of the worldwide economic recession in 2009.

Its overseas operation was no less significant and is in fact a lot stronger as its global dealer posted remarkable sales growths as well. France had an 86% increase in Land Rover sales in France rose by 86% while those in Turkey grew by 162%. Even emerging markets in China showed sales doubling while sales in Brazil increased 75%. Land Rover sales in South Korea were likewise up 87% while in South Africa, sales got the most increases at 165% from the previous sales volumes. The more mature markets in North America showed a more modest gain at 18%.

Hosted by Eastern Eye newspaper, the annual Asian Business Awards forms part of the Asian Media & Marketing Group – UK’s largest Asian publishing house. They are considered the pre-eminent and most prestigious business awards that recognize and promote best practices and operating excellence across all industries dotting the business landscape in the emerging and stable Asian markets.

Simon Warr, the Director of Communications and Public Affairs for Jaguar Land Rover had this to say about receiving the award: “Jaguar Land Rover is delighted to be recognized as International Asian Business of the Year (UK) by the Asian Business Awards. Jaguar and Land Rover are brands that are recognized and admired across the world. Both have marvelous heritage, but they also have now a model line up that is the strongest ever. The reception to the latest generations of Land Rover’s Discovery, Range Rover and Range Rover Sport has been tremendous and there is already great excitement about a forthcoming new addition to the Range Rover family that will go on sale in 2011. Additionally, Jaguar’s all-new XJ is currently making news across the globe, building on the success of the XF sedan and XK sports cars.”

Now what else can be said when being praised by your peers? To find out more about it, visit the website lro.com.

Tags: Asian Business Awards, International Asian Business Award, Jaguar Land Rover, Land Rover
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Tata Takes Jaguar Land Rover to the Road of Recovery

Wednesday, April 7th, 2010

Amidst a worldwide economic recession, India is surging ahead with a super-fueled economy considered second only to China. Nothing is more evident of this than the sales performance of Jaguar Land Rover. It just posted $59 million in profits for the month of February.

Providing an encouraging swing to the recovery in global car sales, India’s Tata Motors reported its division selling luxury British marques Jaguar Land Rover sold 17,197 cars around the world in February. That’s a 60 per cent increase in sales for last month.

The previous 10 months in its fiscal year showed a 16% decline reflecting the dismaying economic slump in 2009, Land Rovers sales were up 62% at 13,905 in February alone, representing 55% higher at 3,292 units. A JLR spokesman confirmed that “This is the sixth consecutive month of improvement for Land Rover.”

Land Rover sales and Turkey at 162% higher. In other emerging markets, China sales doubled, while sales in Brazil increased 75%. Sales in Korea were up 87% South Africa rose to 165% from the previous quarters. In the meantime, the more mature North American and Indian domestic markets showed Land Rover sales up at 18% and 46%, respectively.

Tata Motors may have bought the Jaguar Land Rover marques but it continues to employ 8,000 people in the UK to assemble its cars in the West Midlands and at Merseyside and Halewood.

Senior management at Jaguar Land Rover recently reported the company’s first quarter profit since getting acquired from Ford Motors by Tata for £1.25 billion back in the summer of 2008. From October to December 2009, it enjoyed its first profits of £55 million, a stark contrast with the previous quarter losses of £60 million. On the other hand, its Jaguar XF sports car priced starting at £29,900 has garnered better popularity in the UK selling 992 units in the last ten months compared with 258 units in the 12 months prior.

The Jaguar Land Rover Company is currently overseen by Carl-Peter Forster, the new Tata Motors CEO who used to run General Motor’s European operations. The management team at Jaguar Land Rover also found a new head in the person of Ralf Speth.

Mr. Forster and his team have yet to decide on the fate of Jaguar Land Rover’s two West Midlands factories the UK which were earlier announced by the previous regime as slated for possible closure. Its business plans called for closing either Castle Bromwich which makes Jaguars, or its Solihull plant which makes Land Rovers.

Either way, Tata plans to offset either closure with 800 jobs to be created at Merseyside where the new LRX baby Range Rover is planned to be built. But it does leave a bad taste in the mouth that just when JLR is earning money, it would down close down historic factories that would lose thousands of jobs.

Moreover, Jaguar Land Rover’s finances got a boost last week with confirmation from the European Investment Bank that it will be at the receiving end of a £340 million research fund.

For more information, visit timesonline.co.uk

Tags: Carl-Peter-Forster, Jaguar Land Rover, Range Rover, Recession, Tata
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Jaguar Land Rover to Open Five India Dealerships

Wednesday, April 7th, 2010

Jaguar Land Rover is expanding its car dealerships in India. The Luxury marque inherited from the British and now owned by one of India’s largest conglomerate, Tata Motors, Ltd, will operationalize five more JLR dealers this year as it sees economic recovery soaring with sustained increase in the demand for its premium marque, particularly its SUV line in the Land Rovers.

JLR’s sport-utility and sedan vehicles are expected to sell 250 vehicles in India in the nine months of operation ending March 31 as disclosed by Rajiv Dube, president in charge of Tata’s passenger car sales in New Delhi at a recent event marking the launching of Jaguar’s second dealership in India. Mumbai had its first dealership inaugurated in June last year.

Dube is quite optimistic in saying that “Jaguar Land Rover being a thoroughbred British iconic brand would continue to hold an appeal for the Indian masses. The fact that these brands are not being made in India is itself an appealing factor.”

The new Indian dealerships are planned to open in the key cities of Bangalore, Hyderabad, Ludhiana and Chennai, Dube said. There’s also a marketing plan to open a dealership in either Kochi or Pune, he further disclosed.

The world’s second fastest growing economy after China has earlier seen Jaguar, BMW (Bayerische Motoren Werke AG) as well as Daimler AG’s Mercedes-Benz boosting their marketing presence in India.

This happens as per capita incomes surge amidst a resurgent economy still reeling from the worldwide recession that is expected to end soon.

According to Merrill Lynch’s Wealth Management Group and Capgemini SA, the number of wealthy individuals with more than $1 million in financial assets is likely to more than triple by 2018 from 84,000 in 2008. The optimistic outlook remains seems an observed reality despite the world recession that started that year.

The Land Rover marque had its pioneering all-terrain 4X4 vehicle in 1948 following WWII and a year after India won its independence from mother Britain. It is considered the precursor of current SUVs that have been the road going craze preferred by families and executives over sedans and station wagons for the last decade.

Jaguar, on the other hand, is a race-pedigreed luxury sports car that has roots dating back to the 1920s in the same league as Porsche and became famous for its E-Type released in the 1960s and considered one of the most beautiful cars ever made.

Tata Motors was founded in 1945 as an engineering company that built India’s locomotives. Its parent company eventually grew to cover other industries like telecommunications and computers. The conglomerate began to manufacture local indigenous cars like the Indica Hatchback towards the turn of the 21^st century. It bought out Jaguar Land Rover from the Detroit giant Ford Motor Co. in 2008.

For more information, visit businessweek.com

Tags: Car Dealerships, India, Jaguar Land Rover, Tata
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JLR Back On Track Says Industry Expert

Tuesday, March 16th, 2010

David Bailey, one of the leading experts on the auto industry, has stated his belief that Jaguar Land Rover’s impressive return to profit during the last three months of last year is a firm indication that the company has finally found its feet following one of the worst recessions on record. Jaguar Land Rover recorded a profit of £55 million for the final three months of 2009, and this on the back of losses totalling £60 million during the previous quarter.

According to Tata Motors, the owner of JLR, the company’s strong recovery was due at least in part to much stronger general market conditions. Tata also added that additional new models added to its overall range had also aided the company’s performance, with sales rising 68% as compared to the previous period for last year. The sales figure totalled in excess of 165,000 models, with the majority of market growth being seen in North America, Russia, Europe and China.

Mr Bailey, who is professor of international business strategy and economics at Coventry University, stated that the Tata-owned JLR had recorded operating profits following proactive and aggressive cost-cutting measures as well as a rise in sales figures. Professor Bailey added that the improved sales figures were also thanks to upswings in markets such as China and the UK, as well as “through sheer hard work by the firm.” He added that the re-vamped 2010 Land Rover range was also performing strongly, and that the “stunning Jaguar XF is taking on all-comers, and its real benefits have yet to be fully recognised.”

Sales of Jaguar Land Rover increased by almost a quarter to 23%, rising to 44,300 vehicles – a figure up from 35,000 for the previous quarter. The UK market also recorded a rise in sales by a third to 14,400 vehicles. This figure was thought to have been largely helped by the confidence generated by the car scrappage scheme. Chinese sales also rose by 2.1% to 3,400, whilst sales in North America dropped by 7.3% to 9,600 largely as a result of the continued consumer switch to smaller, more fuel-efficient vehicles.

Professor Bailey went on to comment that the switch to more fuel efficient models indicates the importance of Jaguar Land Rover’s recent £800 million investment in green technologies, referencing the potential importance to the company of the LRX – the company’s lightweight hybrid known by some as the ‘baby Land Rover‘.

JLR’s parent company, Tata, has strengthened on the back of the receipt of more than half a billion in overseas funding, including around £170 million from GE Capital. With this JLR will have the ability to draw cash immediately as its cars leave the production lines which will serve to also boost the company’s working capital as it will shorten the 30-40 day waiting gap between the production of cars and their eventual delivery to dealerships.

In conclusion, Professor Bailey stated that he would prefer to see investment in UK industries by British state-owned banks and less support granted to hostile takeovers of successful British companies such as Cadbury. Professor Bailey believes that more government investment in new technologies would enable UK car manufacturers to really compete – especially with regard to electric cars.

Read more on this story, including more of Professor Bailey’s analysis at BBC.co.uk

Tags: David Bailey, Jaguar Land Rover, Tata
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Carl-Peter Forster unveiled as new TM CEO

Tuesday, March 16th, 2010

Tata Motors recently confirmed the appointment of Carl-Peter as their group chief executive officer, giving him overall responsibility for the global operations of Tata Motors which will include Jaguar Land Rover (JLR). Mr. Foster vacated his last post as CEO of General Motors Europe last year prior to the decision by the GM board to cancel to proposed sale of Opel to Magna and retain the unit instead. Mr. Forster had publicly aligned himself with Magna’s bid, and the lengthy negotiations along with political machinations surrounding the German government’s tacit support for the Magna bid led to the stalling of the planned bid. There had been considerable speculation concerning Mr. Forster’s probable appointment to a senior position within Tata Motors after the January departure of JRS CEO, David Smith. It is widely thought in the industry that JLR will be chief among Mr. Forster’s new projects.

Mr. Forster, 55, has been involved in the automobile industry for almost a quarter of a century and has most recently been head of GM Europe, overseeing Saab, Opel/Vauxhall as well as the European arm of Chevrolet. Prior to joining GM in 2001 Mr Forster spent 13 years at BMW, holding a number of posts including Managing Director of BMW South Africa. He was also on the managing board responsible for manufacturing. The chairman of Tata Motors Ratan Tata commented on the appointment and was enthused about the possibility for Tata’s expansion overseas, stating that ‘Mr. Forster’s induction will facilitate its (Tata Motors) ambition towards being a truly international company.”

Mr. Forster’s appointment comes as little surprise to those within the industry as he possesses the requisite experience to push Tata motors on to the next level with his extensive knowledge of the European automobile market and industry. His knowledge of just how a major international player like GM operates and functions in terms of diversity and with an international approach will be invaluable to TM, and is clearly just what the company requires. Mr. Forster also brings valuable cost-management experience from his work on Project Olympia with GM Europe. Also, his perspectives on industrial relations should prove especially valuable to Jaguar Land Rover.

It is believed that Mr. Forster’s industry-wide respect as well as his ability to bring a fresh perspective to the Indian market will be invaluable to TM. It is thought, however, that Mr. Forster’s principal task will be to catapult TM to the next level, and that means international exposure. It could well be a case of right place, right time for both TM and Mr. Forster as many of TM’s building blocks are already there given that the company is already well-established in one of the globe’s emerging markets coupled with very low manufacturing costs. TM is also fairly diverse with regards to its products as it makes cars and trucks, and is also part of a conglomerate that also has the potential to reap further dividends.

For more in-depth analysis and other information related to this story be sure to visit Telegraph.co.uk for all the latest updates.

Tags: Carl-Peter-Forster, Jaguar Land Rover, Tata
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