Business leaders have welcomed the impact on business in the region of Jaguar Land Rover’s first-ever £1 billion annual profit.
The car giant has revealed an after-tax profit of £1.04 billion, and the region’s business community has welcomed it as fantastic news.
The rise – predicted in the Birmingham Post months ago – came after a 26 per cent rise in the number of vehicles sold as the firm turned over £9.9 billion.
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “This is fantastic news – not just for Jaguar Land Rover but for the region and the whole automotive sector.
“It remains a company of key strategic importance to Coventry, Warwickshire and the wider West Midlands – as well as the UK – and its success is to be celebrated
“The brand is known the world over and is making huge headway in the world’s major emerging markets as well as in more traditional markets. That’s great for UK plc and long may it continue.”
Denys Shortt, Chair of the Coventry and Warwickshire LEP, added: “This is great news for Jaguar Land Rover and therefore for Coventry and Warwickshire.
“The company is a truly global brand built on the back of extremely good products, which are very well marketed. It has exciting plans, including developing its Research and Development in this area, which will massively benefit the economy and be a boost to supply chain. I hope it continues to flourish.”
The group said it also benefited from favourable exchange rates across the financial year.
Sales volumes improved to 243,621 as compared to 193,982 in the previous year, on the back of improved market conditions, a better market mix with strong growth in China.
It said there had been a “continued strong response” to product introduction including the all new XJ and Land Rover models.
As a whole, the Tata Motors Group’s global wholesale volumes for the financial year stood at 1.08 million units, representing a rise of 24.2 per cent year-on-year.
Ralf Speth, chief executive of JLR, described the announcement as "a very positive indicator for our business and reflects consumer confidence in our brands and the continued efforts of the entire Jaguar Land Rover workforce".
He added: “This is a solid performance but we must remain focused on delivering a strong, sustainable business model for the future.
“To that end, we have committed more than £1 billion a year over the next five years to the creation of new and exciting products which will strengthen Jaguar Land Rover’s position in the global marketplace.”