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    Surge In Land Rover Sales Lifts Tata Profits

    Soaring sales at Jaguar Land Rover have helped Tata, the carmaker's Indian owners, to a huge rise in profits.

    Sales of the British luxury cars in the three months to the end of December rose by almost 37%, largely thanks to the launch of the new Range Rover Evoque in the summer.

    Some 32,000 of the sports model, nicknamed the Baby Range Rover, were sold by the end of last year, boosting Jaguar Land Rover's quarterly revenue by almost 41%, and taking pre-tax profit to £559m - an increase of about 86%.

    Pre-tax profits for the same period the previous year were £300m.

    Demand for the cars was particularly strong in Russia and China, accouting for 22.4% of sales during the quarter.

    Tata Motor's chief financial officer C.R. Ramakrishnan said strong sales at JLR reflected a better product and market mix.

    The results smashed forecasts and continue an extraordinary turnaround in fortunes at the once-struggling carmaker.

    Tata, which also owns the ultra-cheap Nano car, bought JLR in 2008 from Ford Motor Group for £1.5bn.

    But a year later the Indian conglomerate went cap-in-hand to the Labour government for a £300m hand-out to keep the business going.

    The bid was turned down and Tata made its own emergency cash injection, going on to turn JLR, based in Gaydon, Warwickshire, into its main profit driver.

    Net profits at Tata were up 40.5% in the fourth quarter of 2011 to £440m. Analysts had forecast a rise to £337m.

    Demand for luxury cars in emerging markets more than compensated for waning sales in India.

    Deven Choksey, chief executive of KR Choksey Shares and Securities, said: "JLR has shown improvements in volumes and margins in ways that were way beyond what the market expected."

     

    36 comments

    • Trax  •  3 months ago
      Good on TATA. Indian company, cars made by the British and sold to the Russians and the Chinese. This just goes to show if investments were made in British manufacturing and skills we can be successful. Unfortunately the hedge funds, investors, pension funds (all our savings) still want to invest in China for a quick tax free buck!
      • marcus 3 months ago
        too bloody true.
      • Squelchcruncher 3 months ago
        And Micheal Edwards son (ex head of British Leyland) with that 'Phoenix' bunch of his cronies and assorted shysters sold the last UK car company to the Chinese for a pittance last decade making 6 of them millionaires - throwing hundreds out of work here in the process. So quite where "cars made by the British" figures in all this is ... where exactly?
      • Bert Nodules 3 months ago
        Bad British Management was the problem. When Norton went belly up the boss took the 4 cylinder engine they had developed with him, he would not invest in it believing his existing ancient product was good enough for the world. Lack of foresight, lack of investment and useless management set in their ways were why the British motorcycle and car industry failed.
    • Bert Nodules  •  London, England  •  3 months ago
      Just shows yet again that the failure of the British Motor Industry was totally down to incompetent British Management. With foreign management in control prepared to invest heavily for the future they have gone from strength to strength and are exporting more vehicles than ever. Just get the new Defender right!
      • Richard 3 months ago
        No, illiterate marxist Trade Unions ruined the industry to such an extent that it was impossible to borrow money to invest in new technology. I lived in Longbridge for 20 years, so my neighbours were the people doing it and they didn't give a damn.
      • puskascat 3 months ago
        Management mantra - anything that happens in a company is down to the management, and that includes managing the workforce.
      • Pete H 3 months ago
        Can't manage people blocking the gates
    • Dan  •  3 months ago
      If someone had said 50 years ago..that Jaguar,Land Rover,British Steel and Tetley Tea would be owned by India companies one day!!!..They'd have been put in a straight jacket and taken to a Mental Institution!!!
    • David  •  Kremenchuk, Ukraine  •  3 months ago
      Call me sentimental but it saddens me when I see this sort of news item and makes me wonder why we couldn't have done the same ourselves, when it was British owned and run.
      • Geo 1 3 months ago
        Because the greedy fat cats ate their cake but still wanted more.
      • Steve 3 months ago
        We could have except for the greedy workers fired up by the unions
      • MIke 13 3 months ago
        the unions grow up that con has run its course
    • Dan  •  3 months ago
      What can I say??..Congrats to Tata for turning failure to success!!..shame we British could not have done that..and don't go blaming it all on the Unions..a large part of the reason for its failure,like so many other British Car manufacturers,was the Japanese taking over the African and Asian markets in the 70's and 80's,also lack of decent investement by our Government of that time!!
      • cns 52 3 months ago
        Our goverments could not afford to invest when we were bailing them out all the time.Unions are to blame for the dimise of the car industry in this country.I have spoken to car workers on here who agree.One even pointed out they went on strike because there was no fan in a buliding.Then when one was installed it was in the wrong place,so off they toddle again.Idlers that is our union workers
      • Dan 3 months ago
        There may have been some extremists,but not the majority..so many trade union issues were due to greedy employers not giving decent wage increases..and that still continues to this very day!!!
      • Frogs knows all 3 months ago
        Oh dear Dan, our Leyland group was state owned yet the strikes were endless, just like British Rail.
    • Richard  •  Chesham, England  •  3 months ago
      Fantastic news. Well done management. Well done workers. Chokes me to say it, but well done Unions. Can you do the same in other industries please? I have a Jaguar and it is fabulous. This is how the UK will get out of recession, forget the bankers.
    • David  •  Watford, England  •  3 months ago
      well this proves us english cant hold a piss up ina brewery when it takes a foreign owner to make a profit ,does not bode well for the running of this country perhaps we should ask the indian firm to run our country as it seems we cant.
    • marcus  •  3 months ago
      They (TATA) are doing a pretty good job with our steel plants in the UK too! Far better than the Dutch arseholes who used to run them..
    • Paul The Other One  •  3 months ago
      Well done TATA for having the foresight and courage to invest in a great British product.
      • Squelchcruncher 3 months ago
        To be fair - most of the UK car industry has been owned by foreign investment for decades!
        I recently sold one of the last end-to-end UK made Land Rovers - a 1973 Series 3!
    • horrible hobbit  •  3 months ago
      good news for the INDIAN OWNERS................
    • who cares  •  Boston, United States  •  3 months ago
      JLR makes some of the most appealing cars.. I am completely unsurprised at these results
    • MIke 13  •  London, England  •  3 months ago
      Good decision by the conservatives to let it be sold off remember no public money for British industry was there war cry shame the same rule did not apply to the banks you have been had and the same con men are blowing smoke in your eyes now stop listening to what that say and start looking at what they do YOU ARE BEING HAD OVER and the band plays on
    • union and proud  •  Manchester, England  •  3 months ago
      Good management ,not British management ,same applys to Nissian in Sunderland who have just broke a production record of 480,000 cars last year , look after your workforce and they will look after the company !!
    • ronnie  •  3 months ago
      Great News Great Indian company,
    • bear  •  York, England  •  3 months ago
      FANTASTIC ....boost the profits for a INDIAN COMPANY ......haha....tetyetye.....hahaha ...what about US .in the uk ??????????
    • PHIL G  •  London, England  •  3 months ago
      It proves again the engineering excellence of Great Britain unfettered by government the business acumen of the Indian people.
    • Stan Dupp  •  Manchester, England  •  3 months ago
      What a pity we couldn't do it when Red Robbo was running the company all those years ago.
    • Steve  •  3 months ago
      The Jaguar XF combined with the service recieved by the local Jaguar dealer over the last 3 years is amazing, it's no wonder they are doing well
    • The Technical Team  •  3 months ago
      Shame are eco-driven politicians have tried to price them off our roads with huge road tax.
      Let's see a prius tackle a snowy road.
    • Alan M  •  3 months ago
      Awful, girlie car, the Evoque. Only good for male hairdressers named 'Chevais'. Range Rover Sport, that is the car.