Jaguar Land Rover to spend $5.3bn on new models and tech
Jaguar Land Rover will spend about £4.5bn (€5.13bn) in the current financial year on new models and technologies as the luxury carmaker looks to spur sales that grew at a slower pace.
"We will continue with over-proportional investment in new vehicles, manufacturing facilities and next generation automotive technologies in line with our autonomous, connected, electric and shared strategy," chief executive officer Ralf Speth said in a statement.
The company spent £4.2bn in the year ended March 31.
Deliveries at the luxury-car unit of Tata Motors grew at 1.7pc in the year through March, with demand for newer models such as the Jaguar E-Pace compact sport utility vehicle 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 15pc from 25pc, granting foreign carmakers further access to the world's largest auto market.
While the Chinese market is providing sales traction for Jaguar Land Rover, growth has slowed over the past year, Debjit Maji, an analyst at Kolkata-based Stewart & Mackertich Wealth Management, said before the results.
"The recent announcement of reduction of auto import duty from the Chinese government is likely to augur well for JLR as it will bring down the prices of their products and make them more competitive, but it is true for its peers also."
Tata Motors net income fell 51pc to 21.3 billion rupees (€265m) in the three months ended March, a steeper decline than analyst estimates. Profit before tax at Jaguar Land Rover dropped 46pc to £364m in the period.