AutoBeta(AutoBeta.net)01/31 Report--

Jaguar Land Rover, a British luxury car company, reported a pre-tax profit of 318 million pounds ($414 million) in the third quarter of fiscal 2019, up 591 million pounds from a year earlier and a loss of 273 million pounds in the same period in 2018, according to the report. Revenue rose 2.8 per cent to 6.4 billion pounds, or about $8.3 billion.

Jaguar Land Rover Global CEO Schweder said: "thanks to ongoing changes in business operations, Jaguar Land Rover continues to achieve both revenue and profit growth. Although the automotive market as a whole still faces many challenges, our excellent performance in the Chinese market and the excellent performance of the new generation range Rover Aurora make us confident. "

According to sales figures released by Jaguar Land Rover, the global market accumulated sales of 557700 vehicles in 2019, down 5.9 per cent from a year earlier. Of these, Jaguar brand sales fell 10.6 per cent year-on-year to 161600 vehicles in 2019, while Land Rover brand sales fell 3.8 per cent to 396100 vehicles.

In the Chinese market, although Jaguar Land Rover's monthly sales rose 26.3 per cent in December, achieving six consecutive months of double-digit growth, sales fell 13.5 per cent for the whole of 2019. In addition, in Europe, Jaguar Land Rover's full-year sales fell 4.9% year-on-year, 1.7% in the UK and 14.2% in overseas markets.

Affected by the global car market and Brexit, Jaguar Land Rover has been losing money, while the decline in Jaguar Land Rover's performance has directly affected the revenue of its parent company, Tata Group.

Jaguar Land Rover, a second-tier luxury brand, has also had a bumpy experience. BMW bought Land Rover for £800m in January 1994, sold the Land Rover brand to Ford for £1.8 billion in 2000, and Ford sold Land Rover and Jaguar brands to India's Tata Group for $2.3 billion in 2008. After India's Tata Group took over, Jaguar Land Rover was introduced into the Chinese market, and sales of Jaguar Land Rover increased rapidly after entering the Chinese market, but sales of Jaguar Land Rover fell sharply in 2018 due to frequent exposure of car quality problems. At present, Jaguar Land Rover has been gradually marginalized in the second-tier luxury brands, through price cuts to achieve sales growth, brand degrees are gradually falling prices.

Jaguar Land Rover profit growth is mainly due to the implementation of cost reduction and efficiency programs, although the major car market sales showed varying degrees of decline, but sales have rebounded to varying degrees than before, especially in the Chinese market.

In the third quarter of 2019, Jaguar Land Rover announced a cost reduction and efficiency plan, which resulted in cost savings of £100m in the first quarter of 2019 and £162 million in the second quarter. The plan aims to achieve a total of £2.5 billion in cost, profit and cash flow optimization by March 2020.

At present, Jaguar Land Rover is taking a series of measures to save costs and increase sales through price cuts, new car upgrades and other methods. Pan Qing, president of Jaguar Land Rover, said publicly that by 2021, Jaguar Land Rover will have 30 new and modified products on the Chinese market.

Although the performance of Jaguar Land Rover has picked up somewhat than before, the plight of Jaguar Land Rover is still not optimistic. Jaguar Land Rover still needs time to solve the problems of how to improve product power, product quality and sales services. but at present, brands such as Lexus and Cadillac, the second-tier luxury market, have entered a white-hot stage, leaving little time for Jaguar Land Rover. Whether it will be able to break through is still unknown.

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