Jaguar Land Rover – The New Darling of Tata Motors
Europe may be getting blanketed by its current sovereign debt crisis by the former UK colony’s largest automobile manufacturer remains undaunted and is bullish about its sales. You can find affordable Land Rover accessories in the UK by visiting McDonald Land Rover. There you can find cheap Land Rover Classic parts for your Land Rover.
Tata Motors is reporting a vigorous 50% upsurge in its vehicle sales for the period ending in May. The rally is led by its Jaguar Land Rover division which posted a remarkable 72% jump in its UK sales. Needless to say, the welcome developments booted the company’s market share prices to 2.2% in Wednesday’s early afternoon trading. The surges brought the Sensex benchmark index up by 0.3%.
Unprecedented Turnaround
After acquiring the Jaguar Land Rover marques from the struggling auto giant Ford Motors in 2008, at the height of the global economic recession, the JLR was becoming a sore thumb to the Tata Group until just a few months ago when it started hefty sales that has made the JLR division the darling of the Tata Group.
Jaguar luxury car sales saw a 34% increase while Land Rover SUVs delivered a whopping 93% ending in May compared with the same period in 2009. Jaguar car sales have been posting a steady monthly growth since the launch of its latest XJ sedan.
This is totally unexpected when you consider that Europe is currently suffering an extended economic recession brought about the sovereign debt crisis that started early this year in Greece. Europe and the UK take up more than half the market revenues of the Tata Motors in the luxury car markets. But the current trend only proves that the high end markets are more resilient to economic distress than previously anticipated.
Looking Ahead
Industry analysts observe that Tata Motors is now reaping the whirlwind sales of new model launches that have sustained the demands for luxury vehicles in the high end markets considered recession-insensitive. Ambit Capital, a Mumbai-based brokerage firm opines that “The new launches are especially helping Jaguar. And Land Rover is a strong brand by itself. Overall, there has been no negative volume traction yet despite the looming crisis in Europe.
While the new models may sustain the high end market demands, it may be only for just a few months. The debt crisis cloud over much of Europe and the UK still creates uncertainties for most pundits to remain cautious in their prognosis. While any economic recession is sure to diminish the disposable income meant for more luxurious lifestyles, they remain hopeful that any impact on the economy will not shrink the luxury car markets.