MUMBAI: Chinese demand for its luxury Jaguar Land Rover (JLR) models propelled fourth-quarter net profit at Tata Motors', capping a bumper year for the Indian carmaker.
China's boost to JLR's bottom line comes as global carmakers, hit by sluggish sales in established markets such as Europe, shift their focus towards developing economies to drive future growth.
A one-off tax gain also contributed to Tata's 139 per cent quarterly profit leap, which came in spite of a lacklustre performance at its core domestic business.
It also reported a rise in net profit to 135 billion rupees ($2.42bn) for the year to March 31, from 92.7bn rupees the previous year.
JLR's growth in overseas markets - it sells imports in India and recently began assembling some Land Rover models there - has helped insulate Tata from a sluggish domestic car market which grew just 2.2pc in the last financial year.
The British luxury brands, which Tata bought for $2.3bn in 2008, brought in more than 95pc of its profit in the quarter to March 31, as sales grew by 48pc.
Tata is focusing on markets such as Russia and China, as its domestic arm struggles with high costs and sluggish sales growth.
"We see very strong growth in China. The demand for our vehicles, especially the Range Rover and Range Rover Sport, is very high. If the dynamic continues, China will be our number two market," this financial year, JLR chief executive Ralf Speth said.