Tata Group, owners of JLR which saw profits up 40.9 per cent in the last quarter, have invested millions in their Solihull plant and created 1,000 new jobs to help meet increasing demand and prepare for future models.
It has also upped its annual spend on models to £1.5billion, promising to create 40 new luxury vehicles types over five years, with the new XF Sportbreak and Evoque convertible concept being unveiled this week.
Much of what is pushing profit margins is JLR exports to burgeoning markets in China and Russia, with 80 per cent of Land Rovers exported each year
Jonathan Griffiths, JLR PR manager, said: “Obviously we’ve also been growing in emerging markets like China, Russia, India and Brazil.
“Combined with a strong product is also an important factor. We’ve continued to invest in new products throughout the recession and introduced a lot of new and updated products.”
China is a particular focus after it became the third biggest market for Land Rover exports and Jaguar had 124 per cent increase there from 2010-2011.
Mr Griffiths said JLR are now “investigating the possibility of manufacturing over in China.”
The jewel in Land Rover’s crown has been its new Evoque where 90 per cent of its customers were new to Land Rover.
Rachel Murray, PR for Land Rover said: “With the Evoque we noticed a huge gap in the market where Land Rover was not even on the horizon for them. People are now demanding more from their vehicles and a smaller SUV was required. Although the car market is slowing, the SUV market is expanding.”
Land Rover saw sales in every model increase last year with its millionth Discovery rolling off the production line last week.
With such success, there have been rumours that Tata plan to float JLR on the stock market.
JLR declined to comment but a source at JLR claimed the move was “unlikely.”