Indian car maker Tata Motors has reported a massive surge in profits to £1.3bn over the last year up a staggering 260% from the previous year thanks to a 33% increase in revenues.
Business at its Jaguar Land Rover subsidiary witnessed a distinct turnaround, earning £1.1bn in profits before tax, having barely managing to break even in the 2009-10 year.
Exports already forced a 51% leap in income at Jaguar Land Rover during the last year, with developing markets including China seeing the quickest growth whilst the UK share of its business decreased from 28% to 24% of sales.
The leap in the UK unit’s profits – greatly influenced by the declining value of sterling – helped it to pay off its debts, meaning net debt dropped by almost 60% to £233m.
The result demonstrated “consumer confidence in our brands”, according to Jaguar Land Rover CEO, Dr Ralf Speth.
“We have committed more than £1bn a year over the next five years to the creation of new and exciting products,” he added.
JLR has already revealed a brand new £700,000 hybrid supercar developed in collaboration with the Williams Formula 1 team.
Mumbai-based Tata Motors bought the Jaguar and Land Rover marques from Ford in 2008 and will open its first production line for Jaguar Land Rover in India on Friday.