JAGUAR Land Rover yesterday proved that Asian demand for upmarket British brands shows no sign of abating, as the carmarker unveiled record profits thanks to enormous growth in the continent.
Total pre-tax profits hit a record £1.68bn for the twelve months to the end of March, driven by a 48 per increase in sales to China.
Demand for its upmarket vehicles allowed the company to shift a total of 374,636 vehicles during the period and the company is set to invest in additional manufacturing capacity.
The announcement caps an astonishing turnaround for the Midlands firm, which was on the rocks when it was bought by India’s Tata Motors for just £1.5bn in 2008. Now it makes more than that on an annual basis.
“Jaguar Land Rover invested significantly in the product creation process, in our advanced manufacturing sites and created more than 3,000 jobs,” said chief executive Dr. Ralf Speth.
“[We will] spend in the region of £2.75bn on new product, people and infrastructure in the year to March 2014.”
Yesterday’s results show China is on track to overtake Europe and become the company’s biggest single market within this financial year. But sales were up across the world as even cash-strapped Britons bought 20 per cent more vehicles year-on-year.
Jaguar Land Rover’s impressive performance helped offset a sluggish performance at its parent group, which has been hit by slow sales growth in the subcontinent.