SHARES in India’s Tata Motors slipped almost 30 per cent today (8) after its Jaguar Land Rover (JLR) unit in UK recorded its biggest quarterly loss in recent years.
Fall in Chinese demand for luxury cars, uncertainty over Brexit, and rising debts have adversely hit the auto manufacturer.
JLR yesterday (7) announced a net loss of Rs 270 billion in the quarter ended in December owing to a £3bn write-down on JLR. That compared to a profit of Rs 12bn for the same period last year.
The auto maker made a record loss in Indian business history,crossing the deficit recorded by Indian Oil Corporation in 2012, according to Bloomberg.
Tata Motors share price on India’s bench mark Bombay Stock Exchange (BSE) today (8) fell to a new 12 month low of Rs 141.90, down 22.41 per cent compared to the previous close of 182.90 yesterday (7).
Fall in share price was Tata Motors’ biggest intraday fall in 26 years.
“This is a difficult time for the industry, but we remain focused on ensuring sustainable and profitable growth, and making targeted investments, that will secure our business in the future,” JLR chief executive Ralf Speth said commenting on the quarterly results.
Tata Motors said it wrote down its JLR investment following to rigid market situation and expanding debt.