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Losses Deepen for Tata Motors and JLR Unit
Net losses at Tata Motors Ltd. nearly doubled to 37 billion rupees ($536 million) in the Indian company’s fiscal first quarter ended June 30.
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Net losses at Tata Motors Ltd. nearly doubled to 37 billion rupees ($536 million) in the Indian company’s fiscal first quarter ended June 30.
Revenue fell 8% to 615 billion rupees ($8.9 billion), dragged down by slumping results from Tata’s Jaguar Land Rover unit in the U.K.
JLR delivers more than half of Tata Motors’ revenue and 90% of its operating profit. In April-June, the British unit posted a pretax loss of £395 million ($492 million).
Wholesales to JLR dealers fell 4% to 104,200 units, and revenue declined 3% to £5.1 billion ($6.3 billion). JLR’s retail sales shrank 12% to 128,600 vehicles.
In India, the carmaker’s domestic operations saw revenue drop 20% to 13.4 billion rupees ($16.6 billion). Pretax operating profit swung to a 477 million rupee ($7 million) loss.
Tata Motors concedes its home market has declined “sharply and significantly.” In response, the company is cutting costs, simplifying its supply chain and rushing new models to market. The group predicts a gradual improvement in sales and profitability through the remainder of fiscal 2019.
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