Home Business Tata Motors posts Rs8,438 crore loss

Tata Motors posts Rs8,438 crore loss

by the owl speaks

Jaguar Land Rover (JLR), Tata Motors Ltd’s British luxury subsidiary, said car sales had improved in China and the US in the quarter of June but warned that the demand outlook for its vehicles remained uncertain due to disruptions caused by sporadic shutdowns across its markets.

The sales recovery provides some relief to Tata Motors Ltd, India’s largest commercial vehicle manufacturer, which announced on Friday that loss widened from Rs3,698 crore in the year-ago period to Rs8,438 crore in the three months of June.

Chery Jaguar Land Rover Automotive Co., JLR ‘s China company, Ltd (CJLR), an equal joint venture between Chery Automotive Co. of China. Ltd and JLR, got break-even in the quarter of June, the firm said. CJLR’s wholesales stood at 16,513 units in the quarter.

China saw a strong quarterly recovery and demand is on the rise in North America and the UK, Tata Motors group chief financial officer P.B. Balaji said in an interview.

“About 98 percent of JLR retailers are either fully or partially open all over the world. Land Rover Defender, one of the main launches for the year, now has more than 30.000 units in order book, “Balaji said. Tata Motors said consolidated operating revenue fell 48 per cent to Rs31,983 crore due to lower vehicle production and June quarter sales.

JLR, which accounted for 86 percent of Tata Motor’s total consolidated revenue for the quarter of June, said the loss widened to Rs3,500 from Rs2,391 crore in the year earlier because of high fixed costs.

JLR has now set a new target of achieving cumulative cost savings of £6 billion by March 2021 as against the previous target of £5 billion.

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