Jaguar Land Rover says it expects emerging markets will account for a third of its sales in the near future as demand in established regions such as Europe and the US plummets due to the economic climate.
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Cief executive David Smith told Bloomberg News developing countries such as Brazil, China, India and Russia already accounted for around 20% of sales and he expected this to grow to 33% although he did not specify a timeframe.
The British luxury car and SUV maker, now owned by Tata Motors, has opened its first Indian showroom in Mumbai. Analysts say there is a fast-rising number of wealthy people in China and India.
According to a Capgemini/Merrill Lynch report, China last year had 364,000 millionaires and India 84,000, compared with 3m in the US, with China’s top earners expected to overtake those in North America by 2013. China’s auto industry was said to have out-produced the US last year but there is some doubt about the accuracy of some data.
Tata Motors bought JLR from Ford for $2.4bn last year and, with sales falling worldwide, the Indian company is discussing loan guarantees with the UK government, hoping to maintain production and staffing at its three British plants.
