- Tata Motors posts a standalone profit after tax of Rs. 1188 crores
After almost half a decade of investing heavily in Jaguar Land Rover, Tata Motors – the Indian automotive giant, was able to turn the ailing British marque. After turning profitable as a consolidated company in 2014-15, Tata Motors has seen its profits go into the red for the first time in three years.
The uncertainty over the future of diesel engine in the European markets accompanied by the frenzy of Brexit has been a big dampener for the sales of Jaguar and Land Rover in their home-ground. On the other hand, the changes in import taxation in the Chinese market has prompted the local dealers to defer their stocks to Q2, further affecting the global numbers.
With the loss in sales and increasing costs of manufacture and the impending blow of Brexit sanctions has resulted in the loss of revenue for the carmaker while the expenditure has kept on piling up driving it into the red. But with the Chinese demand expected to get back on track, JLR should aim to break even in the next quarter even with the uncertainties of the European markets continuing to loom over.
Tata Motors, the commercial as well as the passenger vehicle arms, have been doing quite well for the past couple of years and have been consistently turning out to be profitable despite the large provisions for investments in future products and technologies. Even Jaguar and Land Rover have done well in the Indian subcontinent posting their highest ever half-yearly sales in 2018.