India’s Tata Motors expects strong demand to drive higher sales of its vehicles despite posting a wider quarterly loss attributed to higher input costs.
The vehicle maker’s optimism extended to its luxury Jaguar Land Rover (JLR) unit.
Tata Motors reported a consolidated net loss of 50.07 billion rupees ($626.88 million) for the quarter ended June 30, compared with a loss of 44.51 billion rupees a year earlier.
JLR took a hit mainly because of supply chain disruptions, a slower-than-expected production ramp up of its new Range Rover and Range Rover Sport models and Covid-19-related lockdowns in China, chief financial officer PB Balaji said.
“We are disappointed with our performance in this quarter and aim to come back stronger,” Balaji said.
Easing Semiconductor Shortage
As semiconductor shortages ease, Tata Motors expects to sell 90,000 JLR vehicles on a wholesale basis in the current quarter – higher than in the last five quarters, including the June quarter when it sold 72,000 units, down 15% from a year ago.
Balaji said demand is expected to remain strong despite worries about inflation, interest rates and the geopolitical situation.
“If you look at the segments we are in, these are premium luxury and are less risky, less prone to recession compared to others,” he said.
JLR’s current order book stands at 200,000 and to refill its depleted retail pipeline the company will need another 100,000 vehicles, Balaji said.
Tata Motors expects capital expenditure of £2.6 billion ($3 billion) at JLR for the full year, including for electrification of its portfolio.
- Reuters, with additional editing by George Russell