An economics expert at Coventry University thinks that Jaguar Land Rover is finally turning the corner thanks to some excellent results in operating costs.

David Bailey, Professor of International Business Strategy and Economics at Coventry University said that the Tata-owned firm has made an operating profit after aggressive cost cutting and a rise in sales.

He added: "Sales figures were boosted by improvements in markets like China and the UK and through sheer hard work by the firm. Also its 2010 range of revamped Land Rover, Range Rover Sport and Discovery 4 is doing well. Meanwhile the stunning Jaguar XF takes on all-comers and the real benefits of the XJ are yet to come."

JLR sales rose by nearly a quarter to 23% to 44,300 vehicles, up from 35,000 in the previous quarter. The UK market saw sales up by a third to 14,400 vehicles (with confidence more generally boosted by the scrappage scheme), while Chinese sales grew by 2.1% to 3,400. North American sales fell by 7.3% to 9,600 as consumers continue to switch to smaller, more fuel efficient cars.

Professor Bailey added: "The switch to more fuel efficient cars shows how important JLR's £800 million investment in green technologies really is, and how key the LRX (a lightweight hybrid 'baby' Range Rover) will be."

Tata, JLR's parent company, has recently secured over half a billion in funding from overseas - with some £175 million coming in loans from the State Bank of India and another £170 million from GE Capital.

Under the latter, JLR will be able to draw down cash as soon as its cars roll off production lines, in turn boosting the firm's working capital by shortening the 30/40 day gap it has to wait between producing cars and delivering them to dealerships.

Professor Bailey concluded: "In future I'd like to see more investment in UK industry by British state owned banks and rather less effort spent backing hostile takeovers of British success stories like Cadbury. Our banking system needs to be run in the interests of businesses and households. In order for JLR to remain competitive, especially in the green car market, the UK Government really needs to throw its weight behind the development and production of electric cars. This is an area where the UK really can compete if the Government were to invest in new technologies.

"However, hats off to JLR for a strong set of results. The firm has got on with the job in hand of developing wonderful products and cutting costs to compete internationally - without much in the way of government support.

"There's more to come as the firm has an excellent product pipeline. It will need one if it is to maintain employment in the Midlands - as JLR management genuinely hopes - when it goes from two plants to one in a few years' time."