Tata Motors sees profits rebound thanks to increased Jaguar Land Rover and lower costs
BENGALURU, Nov 9 (Reuters) – India’s Tata Motors (TAMO.NS) said Wednesday it expects earnings and cash flow to rebound in the second half on healthy demand for its Jaguar Land Rover cars and lower domestic steel costs.
Automakers are reaping the benefits of higher prices, a surge in demand for passenger vehicles post-pandemic and lower costs for steel, a key raw material.
“We are seeing a continued increase in demand at JLR,” Chief Financial Officer PB Balaji said on a post-earnings call. The order book is strong thanks to new Range Rover and Range Rover Sport and Defender vehicles, he added.
Passenger vehicle wholesale volume jumped 69% year-on-year to 142,755 vehicles, while Jaguar Land Rover’s wholesale volumes – excluding its China joint venture – jumped 17, 6% to 75,307 units, although below expectations due to chip shortages. Read more
The Chinese market is not a stress at the moment for JLR and the company is focused on in-place sourcing, Balaji said.
Tata Motors, India’s third-largest automaker, has doubled its market share in passenger vehicles to around 14% in the past two years, according to data from the Federation of Automobile Dealers Associations.
The company reported a consolidated net loss of 9.45 billion Indian rupees ($115.95 million) for the second quarter ended September 30, compared with a loss of 44.42 billion rupees a year ago, a she declared in an exchange file.
Total revenue from operations increased by almost 30% to 796.11 billion rupees.
($1 = 81.5000 Indian rupees)
($1 = 0.8739 pounds)
Reporting by Nallur Sethuraman and Anuran Sadhu in Bengaluru; Editing by Dhanya Ann Thoppil and Devika Syamnath
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