Lately, SUVs are booming in sales for car manufacturers and Land Rover, which builds only SUV should obviously be performing better in sales; however, that is not the case.
Land Rover has experienced the slowest growth in the last three-quarters. Does that mean Land Rover is not the preferred choice of customers? As per the parent company, Tata Motors, that is not the case.
The profits from Jaguar Land Rover (JLR) has fallen from approximately $650 million to $401 million over the last three months. Land Rover grew over 4 percent; however, sales of Jaguar brand of cars surged by 76 percent over the last year.
Tata Motors states that it is because of Brexit, it said, "The operating performance in the quarter reflects the overall higher wholesales, offset by adverse foreign exchange impact of 207 million pounds including the re-evaluation of 84 million pounds, mainly euro payables resulting from depreciation in the pound following the Brexit vote."
Jaguar's booming sales are attributed to the models of the new XE sedan and F-Pace SUV and this will drive the profits for Jaguar Land Rover. As for Land Rover, since the boom of SUVs are still at the high end, Land Rover will still make profits and JLR will shake off the slowing sales.