Tata Motors, India-based owner of Jaguar Land Rover, reported a narrower loss than projected in the second quarter of 2019 after the British marque turned profitable working through a cost-cutting program.
Tata Motor reported a loss of $31 million in the second quarter of 2019 as opposed to a loss of $148.22 million for the same period in 2018. The expected loss this quarter was roughly $230.8 million, which means things are improving at JLR.
PB Balaji, group Chief Financial Officer, told reporters that demand for Jaguar Land Rover cars in China is now stabilising. The brand has suffered from troubles with its dealership network in the world’s biggest automotive market.
Although affected by uncertainties over Brexit, JLR managed to bounce back and report significantly reduced losses year-on-year.
After struggling in China, and curtailing losses incurred due to the uncertainty around Brexit, JLR has almost completed a $3.2 billion savings program that includes trimming its workforce worldwide. Tata had bought the ailing pair of brands from Ford in 2008. Despite a massive turnaround in its offerings, quality of production, and perceived value, Jaguar Land Rover has failed to take off as successfully as it was predicted to.
Analysts at Sanford C Bernstein described JLR as “severely challenged” and said Tata Motors should look at BMW as a buyer for the unit. BMW is a well-off group, and is constantly on the hunt for premium marques. However, Tata Group, the Indian conglomerate that owns Tata Motors, is open to acquiring partners for JLR, and is not considering selling the brands outright, said chairman Natarajan Chandrasekaran in an interview earlier this month.