Stronger than expected demand for its vehicles has left Jaguar Land Rover (JLR) facing a shortage of engines and is now exploring ways of boosting supplies.
Carl-Peter Forster, chief executive of Tata Motors, the Indian owner of the luxury car company, said at a press conference yesterday that he was exploring “de-bottlenecking measures” and is talking to suppliers about increasing production.
“There are engine supply constraints right now because demand has exceeded our expectations,” the former boss of General Motors Europe said.
The engines for Jaguars and Land Rovers are supplied by Ford, which owned JLR before a $2.5bn (£1.6bn) sale to Tata in 2008.
Mr Forster was speaking as Tata unveiled strong quarterly result for JLR. Sales increased by 60pc to 57,153 vehicles, helping the company to overturn losses last year and post a pre-tax profit of £233.8m. Sales were boosted by the new Jaguar XJ model and the performance of Land Rover, which in March registered its best month for sales in the UK in the brand’s 62-year history.
In China, JLR sales increased by 104pc, and the company is continuing to explore bringing production to the country.
Mr Forster also said assembly of Jaguars and Land Rovers would begin next year in India for cars sold in that market, which at present total roughly 200 a year.
Overall, Tata Motors revenues rose 64.2pc to 269bn rupees (£3.68bn) for the three months to June 30 and it posted a net profit of 19.9bn rupees, compared to a loss of 3.29bn rupees last year.