Bangalore: Tata Motors Ltd, owner of Jaguar Land Rover (JLR), reported a larger quarterly loss on Friday as the coronavirus crisis hit its sales in several key markets.
The COVID-19 pandemic has dealt a heavy blow to global automakers and put tremendous pressure on Tata Motors, which is dragged down by weak demand and political uncertainty related to Brexit Later tried to increase sales of Jaguar Land Rover.
Sales of Jaguar Land Rover (JLR), which accounted for most of the company’s revenue, fell by more than 42% during the quarter, and Tata Motors said the outlook for the division remains uncertain.
The company said: “For the rest of fiscal year 21, Jaguar Land Rover will continue to strictly manage costs and investment expenditures.”
Earlier this week, the department appointed Thierry Bollore, the boss who ousted Renault, as the next chief executive, with the mission of regaining profits for the British automaker.
Tata Motors reported a consolidated net loss of 84.38 billion rupees ($1.13 billion) for the first quarter ended June 30, compared with a loss of 36.98 billion rupees in the same period last year.
The company said that as overall economic activity picks up, it expects to gradually increase demand and improve supply in the second half of fiscal 2021.
Tata Motors’ total operating income for the quarter fell by 48% to 319.83 billion rupees due to the stagnation of its domestic market, India, due to the pandemic.