Mexican Media Brands
JLR’s Profile Slides as Sales Slow in China
Jaguar Land Rover's revenue in the second quarter dropped 7% to 5 billion (€7.1 billion). Net income plunged 29% to 492 million (€695 million), and operating profit skidded 25% to 821 million (€1.2 billion).
#economics
Share
Jaguar Land Rover's revenue in the second quarter dropped 7% to 5 billion (€7.1 billion). Net income plunged 29% to 492 million (€695 million), and operating profit skidded 25% to 821 million (€1.2 billion).
The company blames a sharp decline in unit sales in China, which fell by one-third to 21,900 units in April-June. Global sales dipped 1% to 114,900 units in spite of a 28% gain to 28,900 in Europe.
The decline caused a 48% drop to 27.8 billion rupees (€396 million) in quarterly net profit for JLR owner Tata Motors Ltd. Tata has been relying on the British luxury brands to offset sluggish demand in India for the company's domestic vehicles.
Tata has reduced JLR's sales and production targets for 2015 by an undisclosed amount. The unit previously predicted its worldwide sales would reach 500,000 vehicles in 2015 from 462,700 last year.
Jaguar and Land Rover already have reduced prices in China to help bolster sales. JLR, like most other carmakers experiencing slower sales growth in China, believes upcoming new models will stimulate demand.
RELATED CONTENT
-
Achieving Efficiency?
A look at on-road fuel economy changes over 92 years.
-
Global Car Market to Shrink for 2-3 Years
Global sales of light vehicles will decline year on year through at least 2021, predicts LMC Automotive at its annual outlook conference outside Detroit, Mich.
-
GM, Ford Evaluate Possible Economic Slump
General Motors and Ford say they have bolstered their cash reserves in case the trade war between the U.S. and China triggers a global recession.