Jaguar Land Rover is eyeing sustainable, profitable growth

Article by Anita Panait, on October 15, 2013

Although Jaguar Land Rover asserted that it does not intend to become a volume carmaker like BMW, there are indications that the United Kingdom-based carmaker is heading in that direction. JLR group sales director Phil Popham told Automotive News Europe at the Frankfurt motor show in September that the carmaker has an aggressive business plan, saying that the group is growing and is investing heavily.

Popham remarked that “it has to be sustainable, profitable growth,” but said the carmaker has no “aspirations to be a volume manufacturer." However, for Popham, volume means over a million vehicles annually.

However, JLR's chief executive in Canada, Lindsay Duffield, remarked in June that the carmaker seeks to reach an output of 750,000 units a year by 2020, with a plan to build a million vehicles annually in the future. Looking at JLR’s recent performance, the goal of 750,000 units by 2020 could be called a conservative figure.  Combined sales of the Jaguar and Land Rover brands in 2012 reached 358,000 vehicles.

To achieve its 2020 target, JLR needs to grow annually by nearly 10 percent. Since JLR’s current growth outpaces that requirement, analysts suggest that the carmaker could achieve its target at a sooner date. Bernstein Research Senior Analyst Max Warburton in a recent report, remarked that JLR's growth in the last two years “has already been spectacular,” and they expect its growth to continue at a “far faster pace than most are anticipating."

For the first eight months of 2013, Jaguar and Land Rover logged a 38-percent and a 12-percent surge in sales, respectively. Combined, Jaguar and Land Rover recorded a 16-percent rise in sales in the first eight of 2013. JLR is also making good progress in China, where it posted a 112-percent jump in sales in the first eight months of this year. JLR is expecting to further hike its sales in China as it commences output at a Changsu site owned by a joint venture with Chery Automobile in late 2014. [source: automotive news - sub. required]

If you liked the article, share on:

Pin It

Comments

Recommended

Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries