INDIA’S Tata Motors said on Monday (October 15) that sales of its British luxury brands Jaguar and Land Rover declined in September – their first monthly fall since July 2011 – helping push down total car sales.
The luxury cars account for most of the Indian vehicle giant’s profit.
Jaguar and Land Rover sales fell four per cent to 26,641 while total domestic and global passenger car sales for Tata Motors slid 11 per cent to 48,895 units.
Sales of Jaguar and Land Rover models have been key growth drivers for the Indian firm in recent quarters.
Indian car sales have slowed due to high borrowing costs, costly fuel and rises in prices due to increases in raw material costs.
Tata Motors bought Jaguar and Land Rover from Ford Motor in 2008 for $2.3bn (£1.42bn) as part of plans to expand its reach beyond Asia.
The deal vaulted Tata Motors from a commercial vehicle and small-car maker into a global player with luxury brands in its range of offerings.
The Tata group subsidiary said slower domestic industrial growth and an overall weak macroeconomic outlook would have an impact on total demand for cars in India.
India’s auto industry last week slashed its growth forecast for full-year car sales to the low single digits as the nation’s weaker economy and high loan costs kept buyers from showrooms.
The Society of Indian Automobile Manufacturers forecast sales growth of between one and three per cent, down from an earlier 10-12 per cent projection.
