China weighs heavy on JLR, misses sales target

However, sharp pick-up in America and Europe helped the two brands, which make up about 80% of Tata Motors' turnover

A severe slowdown in demand for luxury cars in China, the world's biggest automotive market, has dented the half a million sales target of Tata Motors-owned British brands Jaguar Land Rover.

The two brands collectively sold a total of 487,065 units in 2015, missing the targeted 500,000+ sales it had set itself in the middle of last year. The two brands, however, posted a five per cent increase over 2014 sales.

China, which at its peak contributed to more than one-fourth of JLR's total worldwide sales  and the maximum to its margins, slumped 24 per cent last year. A general slowdown in demand coupled with a delay in kick starting local assembly operations and model transition in China impacted volumes. China's share in sales stood reduces at 19.3 per cent at the end of last year.
 

However, a sharp pick up in the US and Europe helped the two brands, which contribute more than 80 per cent of Tata Motors' turnover, to offset the China slump.

Land Rover retailed 403,079, an increase of six per cent over 2014. Jaguar sales were up three per cent for the year same year retailing 83,986 vehicles.

Europe was the company's largest sales region in 2015 with sales of 110,298, up 28 per cent year on year. North American sales of 94,066 were 25 per cent up on the previous year.  

The growth in these markets offset the performance in China and other overseas markets, at 92,474, down 24 per cent.

"This reflected local market conditions, model transitions and the impact of the major industrial explosion at the Chinese port of Tianjin in August", stated a release by JLR.

Andy Goss, Jaguar Land Rover Group Sales Operations Director, said "2016 promises to be another exciting year, with the start of sales of the Range Rover Evoque Convertible and the Jaguar F-PACE, along with further all-new and refreshed vehicles."