Tata Motors has selected its joint venture partner for manufacturing Jaguar Land Rover cars in China and is awaiting Chinese government approvals to start operations, chief financial officer, CR Ramakrishnan has said.
An announcement on the company’s China joint venture will be made “very soon,” he said, without giving details, according to Reuters.
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Jaguar Land Rover contributed 95% of the company’s profit in the fiscal quarter to the end of December, helped by the popularity of its new compact Evoque SUV in emerging markets such as Russia and China, the news agency noted.
The company posted a 40.5% rise in profits in the quarter to end-December, as strong sales of its JLR models offset sluggish performance from its domestic arm, hit by high costs and interest rates in India.
The luxury unit, which Tata bought from Ford for US$2.3bn in 2008, boasted a profit margin of 20% in the quarter, triple that of the Indian domestic business.
Ramakrishnan also said Tata would start doubling JLR investments from this fiscal year ending on 31 March, which would also be used for upgrading technology to meet emission targets.
Tata Motors’ distribution joint venture with Fiat in India is not producing expected financial results but the Indian company has no plans to end the tie-up, he said.
Tata Motors plans to launch 230 showrooms for the Nano in the next 12 months to add to the network of 120, PM Telang, managing director of the company’s India operations, said, adding Sri Lanka and Nepal were “natural” export markets for the car.
The Nano was billed on its launch in 2008 as the world’s cheapest family vehicle and a crowning achievement for Tata Motors, but lacklustre sales, a rising price and quality concerns has seen the car fail to live up to its initial hype, Reuters noted.
Sales start soon in Bangladesh.
