Tata Motors-owned Jaguar Land Rover is making inroads in the Chinese luxury car market, as more consumers take to the roads in luxury SUVs.
While the upper end of the Chinese auto market is all about chauffeured-luxury vehicles, Tata Motors intends to rev up the momentum and roar back to health.
China was Jaguar Land Rover's (JLR) third-biggest market after the UK and North America. The April-June quarter saw China surpass the US and the UK markets to become the biggest market for JLR with 22 per cent of sales.
Though JLR contributed 75 per cent of revenue and 91 per cent of profits to Tata Motors quarterly results, its India unit saw profits halve. JLR sales grew 34 per cent to 83,452 units.
“We see great potential for further growth. We sell our entire vehicle line-up in China and will grow by expanding sales and introducing new derivatives and models, some designed specifically for China,”' said a spokesperson.
JLR is eager to cater to everything a pampered passenger could desire in China. Range Rover's Evoque Special Edition with Victoria Beckham, which is set to go on sale in China in November, is meant to be a prelude to sales in other global markets.
Luxury Jaguar saloons and sporty Land Rover cars are a perfect fit for the Chinese consumer, with the Jaguar XJ 3.0 especially tailor-made for China. Last year, 42,063 JLR vehicles were sold in China. In June, 6,407 JLR cars were sold in one month alone, a 93 per cent increase against June last year.
As part of its plans to expand beyond Asia, Tata Motors had bought Jaguar and Land Rover from US Ford Motor Co in 2008 for $2.3 billion. With an aim to offer Chinese customers the most advanced, highly efficient products, JLR is increasing investments in China.
It recently formed a joint venture with Chery Automotive for 17.5 billion yuan (over Rs 2,800 crore). The Chery-JLR joint venture (JV) is expected to roll off its first vehicle in 2014.
Though official sales began in 2003 for Land Rover and in 2004 for Jaguar, the sustained sales growth has spurred expansion of marketing and service networks. More than 200 people currently work in JLR's China National Sales Company.