Jaguar Land Rover will spend about 4.5 billion pounds (USD5.3 billion) in the current financial year on new models and technologies to spur slowing vehicle sales in light of market changes.
Deliveries at the luxury-car unit of India’s Tata Motors grew at 1.7% in the year through March, with demand for newer models such as the Jaguar E-Pace compact SUV and Range Rover Velar failing to offset a sales drop in older models. The investment push comes at a time when China has announced it will cut import duty on passenger cars to 15% from 25%, granting foreign carmakers further access to the world’s largest auto market.
Tata Motors net income fell 51% to 21.3 billion rupees (USD311 million) in the three months ended March, a steeper decline than analyst estimates. Profit before tax at Jaguar Land Rover dropped 46% to 364 million pounds in the period.