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Land Rover slower sales growth drags down Tata Motors profit
[MUMBAI] Land Rover's slowest growth in deliveries in three quarters dragged down profit at parent Tata Motors Ltd.
Net income fell to 22.4 billion rupees (S$451.0 million) in the three months through June from 52.3 billion rupees a year earlier, Tata Motors said in a statement Friday. Profit at the Jaguar Land Rover luxury-vehicle unit declined to £304 million (S$543.5 million) from £492 million.
Deliveries of Jaguar Land Rover climbed 16 per cent in the three months through June, slower than the previous two quarters, as demand for its Range Rover models waned. Land Rover increased its US spending on incentives and marketing promotions by about 53 per cent in the first six months, according to researcher Autodata Corp.
The luxury unit's sales in the U.K., Europe and North America expanded at a slower pace, while maintaining the rate of growth in China. Land Rover deliveries in the quarter gained 4 percent from a year earlier.
Shares of Tata Motors climbed as much as 4.3 per cent. They traded at 514.70 rupees, or up 4.2 per cent, as of 3:25 pm in Mumbai.
Jaguar's deliveries surged 76 per cent on demand for its entry-level XE sedan and the marque's first sport utility vehicle F-Pace, both of which started selling in the US in May. The British brand lowered its US spending on incentives and marketing promotions by about 17 per cent in the first six months, according to researcher Autodata Corp.