Tata Motors Ltd., Jaguar Land Rover’s owner, said in a statement that net income rose to INR24.2 billion ($529 million) in the three months ended Dec. 31, 2010, from INR6.5 billion a year earlier. That exceeded the INR21.5 billion average of 22 analyst estimates compiled by Bloomberg. Sales increased 22 percent to INR315 billion.
Tata Motors said third-quarter profit more than tripled as rising wealth in emerging markets and a global economic recovery spurred demand for luxury vehicles. Jaguar Land Rover recorded a profit after tax of GBP275 million ($440 million) in the quarter as sales climbed in China where Tata plans to start building the British brands.
With the demand for luxury vehicles, Daimler AG and BMW AG are expanding production and targeting records sales in 2011. Tata Motors said in January 2011 that Jaguar sales gained almost 50 percent in China in 2010, while deliveries of Land Rover SUVs more than doubled.
Tata Motors has said it will build the Land Rover in India and China as economic growth and rising incomes boost demand in the world's two most-populous nations.
C. Ramakrishnan said at a Mumbai press conference that Tata Motors plans to annually invest as much as GBP1 billion in JLR's capital expenditure and product development.
In India, Tata will spend as much as INR30 billion on its products and factories. Juergen Maier, a Vienna-based fund manager for Raiffeisen Capital Management who helps manage about $1.3 billion in assets, said that the overall picture “looks very good” for Tata Motors.
He also pointed out that there is a high demand for luxury cars and competitors like BMW and Mercedes Benz can’t produce enough to meet demand. [via autonews - sub. required]