A profit of £1.1 billion has been posted by Jaguar Land Rover (JLR) for 2010-11, which follows on from the firm barely breaking even in the previous year.

The huge boost in profits comes after a 26% increase in sales for Jaguar and Land Rover cars, with a 51% increase in overseas sales accounting for much of the rise in profitability. JLR says China has been a very successful market for its cars, where buyers are snapping up the top-end models.

Sales in the UK dropped slightly in 2010-11, but this has not stopped JLR announcing a new engine plant in India. Production has started at this factory and JLR chief executive Dr Ralf Speth said: "We have committed to more than £1 billion per year over the next five years to create new and exciting products."

This plan features the C-X75 supercar that will have a £700,000 price tag. JLR is yet to confirm other new models, but it will include a replacement for the iconic Land Rover Defender model.

Alisdair Suttie - 27 May 2011