Company's subsidiary - Jaguar Land Rover (ILR) has reported retail sales of 51591 units for lune, up 11 % from last year. Retail sales for June were up year-on-year in China (65.3%), the UK (3.8%), Europe (3.7%) and North America (3.2%). Land Rover retailed 36248 vehicles in June, up 8.9% from last year led by continuing strong demand for Discovery Sport and strong sales of Range Rover
Way Forward- CONTINUING TO INVEST TO DRIVE PROFITABLE GROWTH
- lLR’s strategy is to achieve sustainable profitable growth by investing proportionally more in new products, technology and manufacturing capacity. Consistent with this, FY18 investment spending is expected to be over £4 b, including investment in the new Slovakia plant.
- lLR’s planning target is to achieve an 8-10% EBIT margin in the medium term, supported by the continued launch of new products and technologies to drive growth with greater operating leverage. However, lLR expects margin pressures seen in FY17 and historical seasonality of volume and profit by Quarter to continue in FY18
- The ramp-up of exciting new products including Land Rover Discoverv, the Range Rover Velar and other new models are expected to drive solid growth in FY18 and beyond
TATA MOTORS DEFENCE OFFERINGS:-
Tata Kestrel: The Kestrel is India’s first indigenous amphibious infantry combat vehicle (ICV), developed in collaboration with Defense Research and Development Organization (DRDO). The Futuristic Infantry Combat Vehicle (FICV) is expected to replace the Indian army’s Russian infantry vehicles that were bought in 1 987 and have to be phased out by 2022. Tata Motors is one of four private bidders for the contract estimated at ? 60,000 crore for the order to supply some 2,600 FICVs.
Forays into future mobility solutions with sub brand TAMO
Company reiterates its position as a leading supplier to Defense Mobility solutions to Indian Armed forces. Company has signed a contract for supply of 3192 units of the Tata Safari Storme 4X4 to the Indian Armed Forces, under a new category of vehicles GSBOO (General Service 800). While the initial order is of 3,192 units, company expect huge potential given over 35,000 Gypsies are due for replacement in the coming years.
‘Make In India’ initiative in defense production is playing important role for Tata motor as Tata Motors wants to graduate from just the logistics and full combat vehicle segment to a full-fledged global defense manufacturer.”
Tata Light Specialist Vehicle : Another Tata entrant, this vehicle is the equivalent of the HMMWV (High Mobility Multipurpose Wheeled Vehicle) in the United States, it is aimed at bringing additional volumes in the company.
Against the backdrop of the rollout of the Goods and Services Tax (GST), Tata Motors has announced a price reduction by up to 12 aiming to pass on all the benefits of the new tax regime to its customers. The reduction in prices will enable the customers to bring down their cost ofoperations and in turn, boost demand.
The M&HCV segments witnessed a surge in demand and availability because ofa production boost in june. Markets shifting to rated load operations have increased demand for 37 tones and 49 tones vehicles. The SCV cargo and pickup segment continued its growth momentum and recorded a sale of11,038 units, compared to 10,029 units in fune 2016 due to good response to th Xenon Yodha and the XL range ofSCV, thus registering a 10% growth.
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