[volkman10]

JLR’s China sales drive Tata Motors into loss, though sales in India stayed on the growth path,

India’s largest automaker by sales, reported a loss for the second consecutive quarter weighed down by a continued weak performance at its unit Jaguar Land Rover Automotive Plc. JLR, which contributes to the bulk of the earnings at Tata Motors

Tata Motors reported a net loss of ₹1,009.49 crore in the three months through September, compared with a year earlier net profit of ₹2,502 crore.

JLR has been witnessing headwinds in the UK, China and Europe due to tariff revisions, consumer aversion to diesel vehicles, and uncertainty on taxation. Furthermore, JLR is losing market share in North America, China and Europe as its volume decline has been greater than that for the industry. In China, volumes fell 45 per cent in the September quarter, while industry volumes dropped 7.7 per cent

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[Chetan_Rao]

Originally Posted by volkman10

JLR’s China sales drive Tata Motors into loss, though sales in India stayed on the growth path

45% volume swing and 3500 Cr. profit variation. Isn't that too steep even accounting for the factors mentioned?

Diesel aversion and tariffs that's cost the market single digit percent decline has cost JLR nearly half its sales volume? Are there other factors that affect them more than others?

[volkman10]

We are telling investors to avoid Tata Motors: Mahantesh Sabarad, SBI Cap Securities

Tata Motors have acknowledged the problem and are working towards cost reduction

JLR is a big problem for Tata Motors at this juncture

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[volkman10]

Tata Motors report net loss of Rs 216.56 cr in Q2 FY20.

On a standalone basis, In Q2FY'20 wholesales (including exports) decreased 44.1% to 106,349 units. In the domestic market, M&HCV trucks de-grew 58.5%, 1LCV trucks de-grew 32.7%, SCV & Pick Ups de-grew 32.5% and CV Passenger de-grew by 42.2%. Domestic PV volumes were down 51.8%.

Revenue for the quarter decreased 44% to Rs 10,000 cr, pre-tax loss at 1.270 Crore (against pre-tax profit of ~ 150 Crore in Q2FY 19) due to adverse mix from M&HCV volume decline, stock correction and negative operating leverage.

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[rsidd]

Not so long ago JLR was Tata's profit driver. In fact, all sensible people were horrified that Tata would buy JLR (sensible people told Ford to dump it ASAP, same advice they're giving Tata now). Tata turned the business around. Most market analysts don't have any sort of big picture in mind, only short-term gains. If JLR is a threat to Tata's existence, ok... but it is the thing that has been keeping them afloat for many years and it doesn't seem like current problems are insurmountable.

[anjan_c2007]

It was really soothing to see homegrown Tata Motors emerge at # 3 based on the July 2020 sales after MSIL and Hyundai with three of the company's models in the monthly Top 20 best sellers list. The Tiago was placed at # 14 (sales* of 5337 units), while the Nexon (4327 units) and Altroz (3636 units) were at # 17 and 18 in the list. That's a welcome change for Tata Motors as it has relegated Mahindra to # 4.

With their nearly Rs 8437.99 crores of losses reported during the Q 1 of FY 2020-21, let us hope that this positioning of the three cars in the Top 20 lasts and improves too. In the meanwhile, the automajor has engaged in discussions for technology and funding tie-up with unknown entity/entities according to Mr Shailesh Chandra, President of the PV unit of Tata Motors.

According to the news :-

Tata Motors has been feeling the heat in the PV space for years and some of its launches have not hit the mark in an evolving market. The homegrown auto major posted consolidated net loss of Rs 8,437.99 crore in the quarter ended June, widening significantly from its Rs 3,698.34 crore loss in the corresponding quarter last year.

Several names as potential partners are doing the rounds, but the company will be circumspect about previous associations, though it requires a strong partner to claw back into the market share game.

“We are already back in the game as No.3 player in PV with Q1 market share of 9.5% as against 4.8% in FY20. Going forward, in the SUV space, we will have a holistic presence with compact SUV Nexon, midsize SUV Harrier, and our future launches -Gravitas and Hornbill - in sub-compact SUVs," said Chandra. In April-July, Nexon and Harrier helped it to clock sales of 9,789 units. In the previous fiscal year, its utility vehicle sales were down 25% to 59,380 units.

“The focus for now is to reimagine the brand; parallelly we are building on our strengths in the PV business. We are one of the few auto companies in India with an end-to-end automotive value chain capability that includes our ability to engineer our solutions more cost effectively and nuanced to the local needs,” Chandra said.

The full report :-

https://auto.economictimes.indiatime...track/77711964

(* teambhp figures:- these like always are despatches made from the manufacturer to the dealers)

[volkman10]

Shareholders slam Tata Motors for investor wealth crash.

Shareholders of Tata Motors lashed out at the company’s leadership at the annual general meeting on Tuesday for denying them dividends and questioned the deterioration in investors’ wealth. “When will the company be back on the dividend paying list?”

One equity investor questioned the high compensation package of the management — CEO Guenter Butschek (Rs 16.44 crore) and CFO P B Balaji (Rs 10.23 crore) — when the company is making losses. A member suggested that Tata Motors should look at selling stake in JLR to private equity to reward shareholders, while another submitted sale of parent Tata Sons shares to unlock value.

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[TorqueIndia]

Tata Motors grew 154% YOY and Indian market by 20% YOY in August 2020. Looks like festive season, 1.5 BS6 helping them !