News - Land Rover
Jaguar Land Rover profit soars as margins grow
Global sales boom helps Tata-owned luxury car-maker rake in the cash
12 Aug 2014
By BARRY PARK
STRONG sales in global markets including Australia have helped Jaguar Land Rover to triple its first-quarter pre-tax profit, the company has revealed.
The Tata Motors-owned luxury car-maker overnight posted a £924 million ($A1.7 billion) pre-tax profit for the quarter of its 2014-15 financial year, with global sales climbing to 115,596 vehicles over the three-month period ending on June 30, pulling in £5.35 billion in revenue for its Indian parent company.
According to Jaguar Land Rover, the big jump in sales for the quarter “reflects solid global demand for the new and refreshed Jaguar and Land Rover line up”, and in particular the Range Rover, Range Rover Sport, Range Rover Evoque and Jaguar F-Type.
"This financial performance reflects Jaguar Land Rover's award-winning product portfolio,” Jaguar Land Rover chief executive Ralf Speth said in a statement announcing the result.
“We are committed to inspire customers with exceptional premium vehicles, delivering the highest standards of quality, technology and customer service.
We delight people with experiences that they will love, for life."While sales of Jaguar Land Rover products have softened in its home market of Britain, in Australia, buyers have warmed to the significantly made-over range that recently added the two-seat F-Type convertible and coupe range to its line-up.
Jaguar sales here are up 11.8 percent to the end of July with 675 new cars finding owners, while the Land Rover line-up, which includes the more premium Range Rover off-roaders, has increased its sales by 16.3 percent to 6007.
Most of the sales growth for the British marque, though, has come from China.
Best of all for the company that bought the brand from Ford in 2008 is the margin the car-maker earns on each sale, which has soared to 20.3 percent, well up on the 15.8 percent for the same quarter last year, the company’s records show.
The strong result comes despite Jaguar Land Rover investing heavily in new technology, including a new aluminium architecture showcased in Jaguar’s C-X17 SUV concept and upcoming BMW 3 Series-fighting XE, developing a range of aids to minimise driver distraction and help with off-road driving, and a range of new, lightweight turbocharged engines.
The car-maker is so flush with cash that it recently decided to buy a private collection of 543 mostly British classic cars, which also happens to feature about 130 Jaguar models including the XK SS, C, D and E-types, reportedly for about £100 million.
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