Tata Motors Group looks to JLR to boost profits
Jaguar Land Rover earnings drive Tata performance
|Source: LMC Automotive, Global Automotive Production Forecast, October 2013|
Tata Motors is experiencing very different performance for its vehicle brands in 2013. Production at the Jaguar and Land Rover (JLR) subsidiary in 2013 is on a path to reach 427 thousand units, an increase of 58 thousand units over 2012 volumes. Demand for the two premium brands continues to grow, particularly in China where the company has announced plans to open a JLR facility in 2014. The plant, with an annual capacity of 100,000 units, will be the first outside the UK for JLR. The company has also announced that it will build a new JLR plant in Brazil.
In contrast, overall production for the Tata Brand is expected to drop by nearly 300 thousand units in 2013 due to sluggish demand for the brand in India. Even the traditional spike in sales during the country's festive season is expected to fall short when compared to 2012. Ammar Master, senior market analyst for India at LMC Automotive said, "We expect OEMs to further trim production through extended holidays and reduced shifts to pare build with market demand." Because of the dramatic fall of Tata production, total volumes for the combined brands is expected to fall by (-22.2) percent in 2013.
Looking forward to the period from 2013-2016, LMC Automotive expects production growth for the three combined brands to reach 53.1 percent. Jaguar is forecast to nearly double production by 2016, Land Rover is expected to show steady growth, and Tata production is forecast to rebound very quickly. LMC states, "the Tata Brand is also expected to expand in the medium-term as the Indian market recovers to its high growth trajectory."
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