Jaguar Land Rover sales in US, Europe weigh on Tata profit

Bloomberg

Jaguar Land Rover’s lower sales in the US and Europe pulled down profit at parent Tata Motors Ltd.
Net income was $187 million in the quarter through December, Tata Motors said. That compares with the 23.5 billion-rupee average of 15 analysts estimates compiled by Bloomberg. Profit before tax at its Jaguar Land Rover unit fell 25% to $271 million.
Deliveries at Jaguar Land Rover grew at a slower 3.5 percent pace in the quarter because of weak demand in North America and Europe. While its newly introduced Velar sport utility vehicle attracted buyers, deliveries of Evoque and Range Rover Sport SUVs declined. Still, the unit’s sales chief Andy Goss said last month that deliveries this year will jump with Jaguar’s first compact SUV E-Pace and its first electric vehicle as well as full year for the Velar and Discovery.
“This is a milestone year for Jaguar Land Rover as we prepare to launch our first ever electric car, the Jaguar I-Pace, and Range Rover plug-in hybrids,” Jaguar Land Rover CEO Ralf Speth said.
“We expect a stronger all-around performance in the fourth quarter driven by new models, seasonality, and improved profitability.”
Jaguar Land Rover’s deliveries declined 2.4 percent in north America and 3.4 percent in Europe. Sales in its biggest market China expanded at a slower 15 percent pace.
Jaguar Land Rover in Januaery said it will scale back production temporarily at Halewood in northern England during the April-June quarter as concerns about
Brexit terms, future of combustion engines hurt consumer confidence and sales. It did not
specify the size and planned time frame of the cutback. Shares of Tata Motors climbed 3.1 percent to 395.80 rupees in Mumbai.