Jaguar Land Rover Sales in U.S., Europe Weigh on Tata Profit

(Bloomberg) -- Jaguar Land Rover’s lower sales in the U.S. and Europe pulled down profit at parent Tata Motors Ltd.

Net income was 12 billion rupees ($187 million) in the quarter through December, Tata Motors said in a statement Monday. That compares with the 23.5 billion-rupee average of 15 analysts estimates compiled by Bloomberg. Profit before tax at its Jaguar Land Rover unit fell 25% to 192 million pounds ($271 million).

Deliveries at Jaguar Land Rover grew at a slower 3.5 percent pace in the quarter because of weak demand in North America and Europe. While its newly introduced Velar sport utility vehicle attracted buyers, deliveries of Evoque and Range Rover Sport SUVs declined. Still, the unit’s sales chief Andy Goss said last month that deliveries this year will jump with Jaguar’s first compact SUV E-Pace and its first electric vehicle as well as full year for the Velar and Discovery.

“This is a milestone year for Jaguar Land Rover as we prepare to launch our first ever electric car, the Jaguar I-Pace, and Range Rover plug-in hybrids,” Jaguar Land Rover Chief Executive Officer Ralf Speth said in the statement. “We expect a stronger all-around performance in the fourth quarter driven by new models, seasonality, and improved profitability.”

Jaguar Land Rover’s deliveries declined 2.4 percent in north America and 3.4 percent in Europe. Sales in its biggest market China expanded at a slower 15 percent pace.

Jaguar Land Rover last month said it will scale back production temporarily at Halewood in northern England during the April-June quarter as concerns about Brexit terms, future of combustion engines hurt consumer confidence and sales. It did not specify the size and planned time frame of the cutback.

Shares of Tata Motors climbed 3.1 percent to 395.80 rupees in Mumbai on Monday. The benchmark S&P BSE Sensex declined 0.9 percent.

To contact the reporter on this story: P R Sanjai in Mumbai at psanjai@bloomberg.net.

To contact the editors responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net, Subramaniam Sharma, Unni Krishnan

©2018 Bloomberg L.P.