India’s Tata Motors widens losses as virus saps demand
BANTEN, INDONESIA – AUGUST 03: Tata MOtors cars are displayed at GAIKINDO Indonesia International Auto Show 2018 at Indonesia Convention Exhibition (ICE), Banten in Indonesia on August 3, 2018. This exhibition was organized by the Association of Indonesian Automotive Industries (GAIKINDO) which took place on August 2nd to 12th, 2018.
(Photo by Anton Raharjo/Anadolu Agency/Getty Images)
India’s Tata Motors reported wider losses for the July-September quarter on Tuesday as the coronavirus pandemic hammered demand in domestic and international markets.
The Mumbai-headquartered firm, which owns British luxury brand Jaguar Land Rover (JLR), announced a consolidated net loss of 3.14 billion rupees ($42.61 million) for the quarter ending September 30 against a loss of 2.17 billion rupees a year earlier.
JLR sales were down nearly 12 per cent compared to the same period the previous year as the virus crisis and uncertainty over Brexit weakened demand.
Tata Motors’ revenues fell by 18.2 per cent to 535.3 billion rupees, the firm said.
The company said however that it expected sales to improve as lockdowns ease and supply chain bottlenecks are removed.
“We remain hopeful for a full recovery… by end of this fiscal year aligned to the overall improvement in the economy”, chief executive Guenter Butschek said in a statement.
Indian carmakers were struggling with low demand due to an economic slowdown and lack of liquidity through 2019, before the virus and a months-long lockdown dealt a sharp blow to Asia’s third-largest economy.
Tata Motors shares closed 1.5 percent higher in Mumbai ahead of the earnings announcement.