China Watch : Jaguar Land Rover turns to China for more sales

George Gao, Gasgoo.com, 29th June, 2009

Jaguar Land Rover, the luxury vehicle division of Tata Motors, expects China and other emerging economies to account for a third of the unit’s sales as demand in the U.S. and Europe plunges amid recession, Bloomberg reported today.

China, Brazil, Russia, India and other developing nations are now about 20 percent of sales for Jaguar cars and Land Rover sport-utility vehicles, David Smith, Chief Executive Officer of the U.K.-based automaker, said yesterday. “Emerging markets are very important for the future of the automotive industry,” he said.

“The number of rich people in India and China is rising very fast,” said Puneet Gupta, a New Delhi-based analyst at CSM Worldwide Inc., an industry consultant. “That category is looking for vehicles that represent their status. Companies would definitely like to tap this segment.”

China last year had 364,000 millionaires, compared with 3 million in the U.S. By 2013, China’s high-net-worth individuals will surpass those in North America, according Merrill’s Global Wealth Management division.

China last year had 364,000 millionaires, compared with 3 million in the U.S. By 2013, China’s high-net-worth individuals will surpass those in North America, according Merrill’s Global Wealth Management division.

Tata Motors purchased the luxury unit from Ford Motor Co. for $2.4 billion last year. In the 10 months ended March 31, sales of Land Rovers fell 39 percent to about 120,000 from a year ago, Tata Motors said June 26. Jaguar sales fell 3 percent to 47,000 in the same period.

Jaguar Land Rover has raised its 2009 China sales forecast as rising economic confidence revives demand for SUVs, Christopher Brown, the unit’s China Managing Director, said earlier this month. Last year, Jaguar Land Rover boosted China sales 63% to 12,456 vehicles.

 [Source: Gasgoo.com]

Clive Goldthorp

About the Author:

Clive claims that his interest in the BMC>MG story dates back to his childhood in the 1960s when the family’s garage premises were leased to a tenant with an Austin agency. However, back in the 1920s and 1930s, his grandmother was one of the country’s first female Garage Proprietors so cars probably run in his genes! Admits to affairs with Alfa Romeos, but has more recently owned an 06/06 MG TF 135 and then a 15/64 MG3 Style… Clive, who was AROnline’s News Editor for nearly four years, stood down from that role in order to devote more time to various Motor Racing projects but still contributes articles on as regular basis as his other commitments permit.

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