Jaguar may reach operating profit levels next year

Tata Motors expressed the hope to revive the profitable run of Jaguar from the next year, said its Chief Financial Officer. The company’s focus is now to bring down the break-even point from the present 60-65% of the production capacity. The target period for this is next year and Jaguar Land Rover is noted for its high-level long term strategy which includes reduction in the price and the break-even points.

The vehicle’s retrieval will include all aspects including labor orientation and marketing. The revival mission has fetched Tata Motors a profit of Rs22 crore for the Q2 against the loss of Rs942crore during the same period last year. The company is able to reduce the loss on quarterly basis from Rs329crore to Rs22crore in Q1. The sale of Jaguar increased 23% (44300 units in July-September period) against 35900 units in the previous quarter.

Further the company has plans to go for green mode, low emission and hybrid products. There will be the smaller mode of Jaguar in next two years. The CFO is full of optimism that Jaguar has completely recovered from the loss immunity test and there will be the horizontal graph for it.

The nightmare with the car for more than 3-5 months has gone now, he said. However the reforming steps for this car is on with the closure of its West Midland plant by 2014 that too on the basis of huge loss. The company had sought the advise of KPMG and Rolland Berger who are with the Gaydon and Whitney sites in spite of the tussle over the making.

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