BENGALURU (Reuters) -India’s Tata Motors Ltd on Wednesday posted a smaller quarterly loss as sales volumes improved, led by increased demand for its cars.
Automakers are reaping the benefits of easing commodity costs and the slew of price hikes to make up for cost inflation. Tata Motors has been increasing prices of its cars in the domestic market in step with costs.
The Jaguar Land Rover parent reported a consolidated net loss of 9.45 billion Indian rupees ($115.95 million) for the quarter ended Sept. 30, compared with a loss of 44.42 billion rupees a year ago, it said in an exchange filing.
Margin recovery was impacted due to residual commodity inflation and adverse foreign exchange, the company said.
Tata Motors has over the past two years nearly doubled its share in India’s passenger vehicles market to about 14%, as demand rebounded from pandemic lows, according to data from Federation Of Automobile Dealers Associations.
The company grabbed market share from rivals such as top car maker Maruti Suzuki India, which once sold one in every two cars in the country. Maruti held 40% share of India’s car market at the end of September.
Meanwhile, Jaguar Land Rover wholesale volumes – excluding its joint venture in China – jumped 17.6% to 75,307 units, though below expectations amid chip shortages.
Quarterly losses before tax at the British luxury car unit JLR narrowed to 173 million pounds ($197.96 million), with earnings margin before interest and taxes of 1% and cashflow near breakeven, the company said.
Wholesale trading volume of passenger vehicles surged 69% year-on-year to 142,755 vehicles.
JLR output and sales are expected to improve with positive profit margins and cashflow expected in the second half of this fiscal, while free cashflow is expected to be near breakeven for the full financial year, Tata Motors said.
“Demand continues to remain strong, however will remain a key monitorable in wake of global uncertainties,” Tata Motors said.
($1 = 81.5000 Indian rupees)
($1 = 0.8739 pounds)
(Reporting by Nallur Sethuraman and Anuran Sadhu in Bengaluru; Editing by Dhanya Ann Thoppil)
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