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Tata Motors sees profits triple on Jaguar turnaround | Tata Motors sees profits triple on Jaguar turnaround |
(40 minutes later) | |
Tata Motors has reported a tripling of profits in the last year. | Tata Motors has reported a tripling of profits in the last year. |
The Indian carmaker made total profits after tax for the last 12 months of 92.7bn rupees ($2bn, £1.3bn), up 260% from a year earlier, thanks to a 33% rise in revenues to 1.2tn rupees. | The Indian carmaker made total profits after tax for the last 12 months of 92.7bn rupees ($2bn, £1.3bn), up 260% from a year earlier, thanks to a 33% rise in revenues to 1.2tn rupees. |
Business at its Jaguar Land Rover subsidiary saw a sharp turnaround, with £1.1bn in profits before tax, having hardly broken even in the 2009-10 year. | Business at its Jaguar Land Rover subsidiary saw a sharp turnaround, with £1.1bn in profits before tax, having hardly broken even in the 2009-10 year. |
The firm said it planned to expand exports by its UK subsidiary. | The firm said it planned to expand exports by its UK subsidiary. |
'Exciting new products' | |
Exports already drove a 51% jump in revenues at Jaguar Land Rover in the last year, with developing markets such as China seeing the fastest growth. | Exports already drove a 51% jump in revenues at Jaguar Land Rover in the last year, with developing markets such as China seeing the fastest growth. |
The UK share of its business dropped from 28% to 24% of sales. | The UK share of its business dropped from 28% to 24% of sales. |
The firm will open its first production line for Jaguar Land Rover in India on Friday. | |
The jump in the UK unit's profits - flattered by the falling value of sterling - helped it pay off debts, with net debt falling by almost two-thirds to £233m. | The jump in the UK unit's profits - flattered by the falling value of sterling - helped it pay off debts, with net debt falling by almost two-thirds to £233m. |
The result reflected "consumer confidence in our brands", according to Jaguar Land Rover chief executive, Dr Ralf Speth. | |
"We have committed more than £1bn a year over the next five years to the creation of new and exciting products," he added. | |
The UK firm has already unveiled a new £700,000 Jaguar hybrid supercar developed in cooperation with the Williams Formula 1 team. | |
Mumbai-based Tata Motors bought the Jaguar and Land Rover marques from Ford in 2008. | Mumbai-based Tata Motors bought the Jaguar and Land Rover marques from Ford in 2008. |
Nano woes | Nano woes |
Meanwhile, sales at Tata's core Indian arm rose across the board, with both commercial vehicles and personal cars up 23%. | Meanwhile, sales at Tata's core Indian arm rose across the board, with both commercial vehicles and personal cars up 23%. |
The company said it thought increased infrastructure spending in India would stimulate further demand for trucks, while it planned to expand sales of its passenger vehicles in rural India. | The company said it thought increased infrastructure spending in India would stimulate further demand for trucks, while it planned to expand sales of its passenger vehicles in rural India. |
However, sales of small cars lagged somewhat in the last year, perhaps reflecting difficulties with the Tata Nano, the world's cheapest car, which began production in 2008. | However, sales of small cars lagged somewhat in the last year, perhaps reflecting difficulties with the Tata Nano, the world's cheapest car, which began production in 2008. |
Tata previously reported that sales of its Nano had slumped 85% in November last year. | Tata previously reported that sales of its Nano had slumped 85% in November last year. |
The company blamed customers' difficulty in obtaining loans, however analysts say that price rises, as well as publicity related to a series of fires in previously sold cars, had a role in the drop in sales. | The company blamed customers' difficulty in obtaining loans, however analysts say that price rises, as well as publicity related to a series of fires in previously sold cars, had a role in the drop in sales. |
Tata said it planned to start exporting the Nano in the coming year. | Tata said it planned to start exporting the Nano in the coming year. |
Exports by its Indian business rose 70%, led by demand in neighbouring countries, but remained a negligible part of its sales. | Exports by its Indian business rose 70%, led by demand in neighbouring countries, but remained a negligible part of its sales. |