The Jaguar Landrover (JLR) success story is at the moment phenomenal, but it is entirely reliant on the emerging economies. So, it will do only as well as these economies do.
The British motor manufacturing is riding high with JLR. As much as 85 percent of JLR revenues now come from exports."
According to Jack Rix, News Editor, Auto Express Magazine, last year JLR globally sold 425,000 cars in total; a 20 percent increase from the year before and there is no reason to think that the growth won’t continue especially with the cars that they have coming down the line. The company has said it has plans for 20-25 different models, but it's whether they can make the business case for each one.
However, these cars will need new roads opening up for them in the emerging economies.
Mike Hawes, Chief Executive, SMMT said: “The growing markets have often been the BRICS countries, Brazil, Russia, India, and China. Growth in China is particularly high; it's become the biggest market for UK cars."
But there are some concerns have arisen whether JLR is relying too heavily on the emerging economies.
According to Jack Rix it's the one thing I've always said to JLR when I've had the chance to talk to top executives - aren't you betting the house on these emerging economies continuing to emerge? They said you're either at the party or you're not. So when they're booming you need to be there, have strong dealership networks, and if the economy takes a dip it's something you have to address when it happens."
JLR is accelerating ahead like no other. Plans for 20-25 new models are said to have been drawn up. But how far they go will depend on how far the emerging economies continue to emerge.
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