BENGALURU -- Jaguar Land Rover recorded a quarterly pretax loss of 395 million pounds ($492 million) before exceptional items during the quarter ended June 30, compared with a 264-million pound ($328.8 million) loss in the year earlier period, parent company Tata Motors said in a statement. Quarterly revenues declined 2.8 percent to 5.1 billion pounds ($6.4 billion.)
Global retail sales of Land Rover and Jaguar vehicles fell 11.6 percent to 128,615 for the quarter. But JLR had record sales in its U.K. home market, up 2.6 percent year-on-year, while China sales rose in June compared with the prior month.
The results mainly reflect lower revenue resulting from the weaker market conditions, Tata Motors said. Additional plant shutdown time resulting from Brexit contingency planning and delays in WLTP certification also contributed to the lower sales and profits, it said.
Tata Motors CFO P.B. Balaji said during a conference call that JLR was seeing a pickup in sales in key market China.
"As far as JLR is concerned, we are seeing China stabilizing, and we expect to see growth from here on as far as Chinese business is concerned," he said.
JLR has been one of the biggest victims of a slowing Chinese car market, with its deliveries to dealerships plunging for 12 consecutive months.
Adding to the challenges is renewed uncertainty in the U.K., where new Prime Minister Boris Johnson has vowed to deliver Brexit in less than 100 days, even if that means exiting the European Union without a divorce deal.
"Should there be an event of a no deal, then that's something we should be ready for," Balaji said. "We already had it all ready for March 31, and therefore we will re-activate those plans."
Jaguar Land Rover CEO Ralf Speth said the automaker's turnaround program will help the company to return to profit this fiscal year.
"We expect to see the impact of growing demand for new models such as the Range Rover Evoque, Discovery Sport and Jaguar XE," he said.