Tata Motors returns to profitability, boosted by strong demand

Tata Motors returns to profitability, boosted by strong demand

Bombay (awp/afp) – Tata Motors returned to profitability in the third quarter of its sluggish 2022/2023 financial year, after seven quarters of the year in the red, due to strong demand linked to better supply of semiconductors and stabilization of prices. product. it was announced on Wednesday.

The Bombay-based manufacturer, owner of Jaguar Land Rover (JLR) thus posted a profit of 29.6 billion rupees (about 333 million euros) in the third quarter ended in late December of its financial year which ends at the end of March.

In the same period last year, it suffered a loss of 15.2 billion rupees.

Quarterly revenue increased by 22.5% from the same period last year to 884.9 billion rupees (about 10 billion euros).

In the quarter ended at the end of December, the British subsidiary of Jaguar Land Rover saw its sales increase by 28.1% to 6.04 billion pounds (about 7 billion euros).

Britain’s biggest carmaker has also returned to profitability, posting a pre-tax profit of £265m (about €300m), compared with a £9m loss in the same period last year.

Jaguar Land Rover owes this benefit to “reducing chip shortages and increasing production and overall sales”, explained in a press release its interim managing director Adrian Mardell.

Sales to car dealers in China were hit by a series of setbacks and a high level of absenteeism linked to the Covid pandemic.

However, the manufacturer expects to normalize for the current quarter, thanks to the relaxation of health measures.

JLR’s order book reached a record 215,000 units at the end of December, after 95,000 additional orders in the third quarter of the fiscal year.

The automaker plans to launch an electric Jaguar model in 2025 from its plant in Solihull, central England.

Tata Motors commercial vehicles saw its sales grow by 22.5% year-on-year to 168.9 billion rupees. But exports in this activity remain weak due to weak demand linked to “geopolitical conditions, inflation and interest rate risks”.

Demand for passenger cars, on the other hand, continues to be strong. In this segment, sales increased by 37.4% year-on-year to 116.7 billion rupees. Retail sales reached 138,900 units, a quarterly record for the company.