Coventry-Based JLR Saw 45 Percent Growth In Q2 2012 Profits To Over £500m
Apparently, fierce competition with BMW, Audi, Mercedes-Benz and other luxury automakers in China hasn’t been too much of an issue for Indian-owned Jaguar Land Rover (JLR), which only three years ago almost resorted to a government bailout. According to stats released last week, the Coventry-based company saw a 91 percent rise in overall sales year-on-year from the Chinese market. Driven by booming demand in China and other emerging economies, JLR recorded a 45 percent total increase in Q2 2012 profits, rising to well over £500m (US$785 million). Much of the sales success seen by JLR in China so far this year has been directly attributed to the popularity of the new Range Rover Evoque — the Victoria Beckham edition of which made a splash at this year’s Beijing International Auto Show – as well as the Jaguar XF.
More than 80% of the vehicles produced at three UK plants are being shipped abroad, increasingly to countries such as China, Brazil and Russia.
“China is strong, especially strong for the luxury market,” said Ralf Speth, the chief executive of JLR. “We have a very low market share in China … therefore we are sure we can continue this growth.”
Impressive China sales don’t mean JLR can expect an easy ride in the country, however. In China’s booming luxury SUV segment, Range Rover’s competition is only set to become more intense in the years ahead, with Aston Martin expected to revive its Lagonda SUV by 2014, Bentley recently debuting its EXP 9 F “Falcon”, and Lamborghini eying wealthy drivers in China and Russia with its URUS SUV. BMW also continues to expand its production base in China, and expects SUV and large sedan sales to push a 20 percent to 25 percent rise in sales in China for 2012.