- Tata Motors posts profit despite decline in revenue.
- Jaguar Land Rover propelled the overall brand growth.
- Range Rover Evoque lead the charts in sales.
Tata Motors has released the financial results for the third quarter (Oct-Dec) of 2020 in the filing sent to the Bombay Stock Exchange (BSE). In its filing, the company has revealed that it has recorded profit of Rs 1738 Crores in Q3 2020 due to the overwhelming performance by its luxury vehicle unit, the JaguarLand Rover. The home-grown automaker had suffered major losses in Q1 and Q2 and it is the first time in 2020 that it has posted profit.
The Tata Group owned Britishluxury automaker registered a sales growth of 24.3 percent in the Chinese market. Range Rover Evoque was the prominent product to lead this growth in China. The company has reported profit despite a drop in revenue by 6.81 percent from Rs Rs 76,915.94 Crores to Rs 71,676.07 Crore as compared to same quarter last year. In the Q3 this year, the wholesales including the exports witnessed a decrease by 24.6 percent to 129,185 units. On the other hand, every other segment such as M&HCV trucks, ILCV trucks, SCV & Pick Ups, and CV Passenger saw a decline 47.7 percent, 15.7 percent, 6.1 percent and 25.6 percent, respectively, in the domestic market.
Guenter Butschek, CEO and MD, Tata Motors, said, “Our focus on retail acceleration and system stock reduction helped us achieve a multi-quarter low inventory level in CV and PV, while simultaneously getting ready for a smooth transition to BS6. We have taken the BS6 transition not only as a mere compliance agenda, but, have gone beyond and provided exciting value enhancements packaged in a completely new product portfolio. We are confident that this approach will reap us rich rewards in the coming quarters. As the sales upbeat of the festive months could not sustain, we remain concerned about the intrinsic demand and weak consumer sentiment.”
Image: Economic Times