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The China joint venture of Tata Motors-controlled Jaguar Land Rover has brought down prices of one of its Range Rovers made locally while also reducing its sales outlook.
The JV company, owned equally by the two companies, started locally manufacturing the Range Rover Evoque in China last October. This led to a price of 50,000 yuan ($8,000) to 398,000 yuan from the start of this month, as per a Bloomberg report.
Tata Motors shares hit a fresh 52-week low of Rs 381.15 today on the Bombay Stock Exchange after concerns were raised on China operations where JLR sells one in every five cars produced. This share, however, reduced from one in every four cars produced last financial year. The company's stock closed at Rs 385.75.
JLR has adjusted output to stabilize retail prices and help dealers in China, the automaker said in an e-mailed response to questions sent by Bloomberg.
JLR sales in China, which is also its single biggest market, fell 27 per cent in the April-May period to 15,678 units as against 21,358 units sold in the same period last year. JLR sales has come under pressure in China because of phasing out of one its models besides being hit by the general slowing in demand for luxury cars.
Last year JLR was forced to reduce prices of three of its models, the Range Rover V8, the Range Rover Sports V8 and the Jaguar F-Type, in response to an anti-monopoly investigation by Chinese authorities.
The Chinese media had been alleging that luxury car makers including JLR have been overcharging customers as the Range Rover in the US is sold for 540,000 yuan compared to 1.89 million yuan in China.
