Land Rover’s China sales help narrow Jaguar’s India losses

Bloomberg

Jaguar Land Rover’s Indian owner reported a narrower loss than expected in the second quarter after the British luxury unit turned profitable working through a cost cutting program.
Tata Motors Ltd lost 2.17 billion rupees ($31 million) in the three months ended September 30, compared with a loss of 10.5 billion rupees a year earlier, the company said.
Analysts on average expected a loss of 16.35 billion rupees, according to data compiled by Bloomberg.
Demand for Jaguar Land Rover vehicles in China in now stabilizing, PB Balaji, group chief financial officer, said on a conference call with reporters.
The brand has suffered from quality issues and troubles with its dealership network in the world’s biggest auto market, while parent Tata has been hit by the worst-ever slump in India’s auto market.
After struggling in China, and dealing with fallout from the ongoing uncertainty around Brexit, JLR has almost completed a 2.5 billion-pound ($3.2 billion) savings drive that includes cutting thousands of jobs worldwide, the carmaker said.
Tata Motors bought the maker of the Jaguar XE sedan and Land Rover Discovery sport utility vehicle from Ford Motor Co in 2008.
JLR’s pretax profit for the quarter was 156 million pounds.
Analysts at Sanford C. Bernstein last month described JLR as “severely challenged” and said Tata Motors should look at BMW AG as a buyer for the unit because the German company is “awash with cash.”
Tata Group, the Indian conglomerate that owns Tata Motors, is open to finding partners for the automaker but isn’t planning on selling the embattled division, Chairman Natarajan Chandrasekaran said .