Tata Motors recorded its biggest gain in 18 months after August sales at Land Rover surged at its fastest pace in over a year. The owner of Jaguar and Land Rover, Tata Motors gained 7% to 161.85 rupees (2.48 euros) when the stock exchange closed. This was its sharpest increase since March 2, 2010. When CEO Carl-Peter Forster resigned on September 9, the company’s stock fell 38% this year.
It fell up to 6.2% on Sept. 12. Forster is credited for helping the Jaguar Land Rover unit becoming profitable once again in the year ended March 31.
The deliveries of Land Rover increased monthly since November 2009, when Tata Motors began reporting its monthly global sales, says Autonews. Land Rover had helped to offset the declining demand for Jaguar and the Tata Nano, the cheapest car in the world.
Delivery of the Range Rover Evoque compact SUV started on Sept. 9. A new Defender model is expected to be introduced in 2015. Umesh Karne, a Mumbai-based analyst with Brics Securities Ltd., said that sales were “very good” particularly in markets that are emerging as more people choose luxury sports utility vehicles over sedans.
He added that by next month, sales will go up further with the start of Evoque deliveries. The automaker said that in August, worldwide sales of trucks and buses climbed by 17% to 48,023 vehicles.
Jaguar Land Rover sales increased by 31% to 21,242 vehicles, buoyed up by a 43% increase in Land Rover deliveries, the quickest pace since May 2010. Meanwhile, the Jaguar Land Rover unit (based in Gaydon, England) accounted for 57% of Tata Motors' revenue for the year ended March 31, a 53% increase from the previous year.