Tata Motors was the unlikely high bidder in the risky acquisition of Jaguar and Land Rover , which many critics said would never work. For the first few quarters following the transaction, that appeared to be true – until now.
Although Tata Motors is nowhere near being out of a very difficult situation in regards to its multi-billion dollar investment in the British luxury brands, they can at least now report a small profit of $4.7 million for last quarter. Compared to the previous several quarters of heavy losses, the small profit is a welcomed change.
Tata points largely to the sharp increase in sales for it’s newly acquired luxury brands, with a combined increase of 23 percent over the previous quarter.
Jaguar and Land Rover ’s increases in sales are largely due to the release of the popular new XF and LR4 models – which have helped to return the auto group into profitability again.
Moving forward, Tata’s profitability will rely heavily on its ability to continue to find ways to cut costs while continuing to bring competitive products to market.
