Jaguar Land Rover sees record profits of £1bn as sales soar in China and India

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Jaguar Land Rover sees record profits of £1bn as sales soar in China and India​

The Range Rover Evoque goes on sale this autumn.​

Jaguar Land Rover has made one of British industry's most remarkable comebacks, reporting record profits of more than £1bn as sales powered ahead in emerging markets such as India and China.

Less than three years since Indian conglomerate Tata bought the British car company for £1.1bn from Ford, it has boosted global sales by 26% to 244,000 vehicles in the year to the end of March. The latest profits compared to a surplus of just £32m chalked up in 2009/10 when much of the world was mired in recession.

Analysts said JLR was achieving higher margins and selling more expensive models, as well managing its costs more efficiently. It had benefited from favourable foreign exchange rates and the popularity of new marques such as the Jaguar XJ.

JLR, which sought government aid at the height of the financial crisis amid fears it could collapse, said demand was soaring from middle-class customers in Asia, South America and the Middle East.

The company, which has two factories in the Midlands and one in Liverpool, said it was in the throes of a massive expansion programme that will see it recruit another 1,000 engineers as it seeks to develop new models. More than 1,500 additional British staff have already been taken on to help with the launch of the Range Rover Evoque, which goes on sale in the autumn.

A JLR spokesman said: "We employ 17,000, but our UK payroll number should increase to 20,000 by 2013. We plan to spend £1bn a year over the next five years on production and development."

Asked on Sky News if he regretted selling the company to Tata in 2008, William Clay Ford, the head of Ford, said: "We had to focus on our brands. But we took their quality from worst in class to best in class." He claimed Ford's investment was now coming through for Tata, but he congratulated the Indian company on its figures.

The biggest growth for JLR was in China where it sold 70% more vehicles than in 2009/2010. But JLR's largest market remains Britain where Land Rover sales (42,000) were up 8% and the best selling brand was the Freelander (starting price: £36,000). However, strong overseas demand for Jaguars, Range Rovers and Land Rovers has made the company one of Britain's most important exporters.

Analysts said Jaguar and Land Rover were fast becoming "a trophy brand" for tens of millions of people in emerging markets and were becoming increasingly popular in continental Europe.

JLR's figures were welcome news for Tata whose boss Ratan Tata last week ran into controversy when he said British managers didn't work as hard as their Indian counterparts. He made his remarks on the same day as unions criticised Tata Steel, formerly Corus, for axing 1,500 jobs in Lincolnshire and Teesside. The group blamed weak demand and the cost of climate-change legislation.

In an interview, Tata said British managers weren't prepared to "go the extra mile," while those in India were working in a "warlike situation".

JLR, which lost around £280m in the first 10 months of Tata's ownership, reported growth of 49% in Germany, 68% in Russia and 61% in India where the group benefited from Tata's local knowledge.

Carl-Peter Forster, Tata Motors group chief executive, commented: "Jaguar Land Rover is now a strong, profitable and innovative competitor in the premium car industry. The company's significant contribution to Tata Motors' earnings reflects a commitment to excellence and dedicated teamwork at Jaguar Land Rover and this will deliver even more attractive models and technologies to customers worldwide."

Report : Guardian