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Jaguar Land Rover sees higher incentive costs amid competition
[MUMBAI] Jaguar Land Rover will have to continue to offer higher incentives to win customers as competition intensifies after Tata Motors' luxury unit posted slower growth in deliveries.
A one-time gain helped Jaguar Land Rover post a 49 per cent jump in profit before tax of £595 million (S$1.055 billion), its Mumbai-based parent said on Wednesday.
The profit includes a one-time credit of £437 million related to the company's pension plans. Net income at Tata Motors climbed 42 per cent to 31.8 billion rupees (S$ 680.17 million).
The luxury unit expects the incentive and cost pressures on profit margins to continue in the current financial year, chief financial officer Kenneth Gregor said in its annual report last month.
Deliveries at Jaguar Land Rover grew at a slower 4 per cent pace in the quarter because of weak demand including for Land Rover's Discovery Sport and Range Rover Sport SUVs. Sales expanded 13 per cent in the three months ended March 31.
The automaker also said costs related to introduction of new models will continue. Jaguar Land Rover unveiled its new Velar SUV this year and plans to introduce its first all-electric Jaguar I-Pace vehicle.