In the second quarter, Tata Motors Ltd.’s profit rose by more than a 100-fold as the increasing demand in the U.S. and China and the worldwide economic recovery increased sales of luxury vehicles.
The Mumbai-based Tata, which owns Jaguar Land Rover, adds that its group net income, along with Jaguar Land Rover, struck 22.2 billion rupees ($502 million) in the three months through September. This compared to 218 million rupees in the prior year.
Sales surged 36 percent to 287.8 billion rupees and profit surpassed the 17.1 billion-rupee average estimate of 10 analysts brought together by Bloomberg.
With sales up 43 percent on the demand for the $72,000 Jaguar XJ sedans in China and the U.S., Jaguar Land Rover returned to a profit during the quarter.
A fund manager at Raiffeisen Capital Management in Vienna says that Jaguar Land Rover has models that people are interested in.
With the exception of Jaguar Land Rover and other units, profit dropped 41 percent to 4.33 billion rupees, behind the 5.14 billion-rupee average estimate of 19 analysts. Daimler AG, Mercedes-Benz’s owner, and BMW AG have both increased their profit forecasts. [via autonews - sub. required]