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
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.