“Since Tata Motors is largely dependent on commercial vehicle sales, for the margin to improve significantly, there has to be a major contribution from CVs,” he said.
Centrum Broking’s auto analyst Mahantesh Sabarad said the company’s volume outlook was looking better. “We expect a margin pressure in the next quarter coming from its new range of products such as the Nano, World truck and the Indigo Prima,” he said.
Tata Motors, under its new MD Prakash Telang, increased reach across the country and introduced new products and variants, which helped volumes, except in the heavy truck segment. Of late, this segment too has witnessed increased activity, thanks to a government stimulus package and infrastructure initiatives such as the Jawaharlal Nehru National Renewal Mission (JNRM) initiatives.
Tata Motors’ domestic sales at 122,120 vehicles saw a marginal decrease of 1.4% over the corresponding quarter while exports at 5,220 vehicles continued to be severely impacted (-43%) in the wake of continuing volatile global environment. Total sales fell 4.3% to 1.27-lakh vehicles.
Tata Motors vice-chairman Ravi Kant said the company was most affected in South Africa, Middle East, Russia and Turkey. “We expect a recovery in the July-September quarter,” Mr Kant said.
A $1.1-billion loan (around Rs 5,280 crore at current exchange rates) contracted by the company to buy Jaguar and Land Rover, has taken Tata Motors’ debt to $850 million (Rs 4,080 crore). The $2.3-billion (Rs 11,040 crore) acquisition cost of the UK-based luxury brands pushed the company to its first consolidated loss in at least seven years.
Centrum Broking’s auto analyst Mahantesh Sabarad said the company’s volume outlook was looking better. “We expect a margin pressure in the next quarter coming from its new range of products such as the Nano, World truck and the Indigo Prima,” he said.
Tata Motors, under its new MD Prakash Telang, increased reach across the country and introduced new products and variants, which helped volumes, except in the heavy truck segment. Of late, this segment too has witnessed increased activity, thanks to a government stimulus package and infrastructure initiatives such as the Jawaharlal Nehru National Renewal Mission (JNRM) initiatives.
Tata Motors’ domestic sales at 122,120 vehicles saw a marginal decrease of 1.4% over the corresponding quarter while exports at 5,220 vehicles continued to be severely impacted (-43%) in the wake of continuing volatile global environment. Total sales fell 4.3% to 1.27-lakh vehicles.
Tata Motors vice-chairman Ravi Kant said the company was most affected in South Africa, Middle East, Russia and Turkey. “We expect a recovery in the July-September quarter,” Mr Kant said.
A $1.1-billion loan (around Rs 5,280 crore at current exchange rates) contracted by the company to buy Jaguar and Land Rover, has taken Tata Motors’ debt to $850 million (Rs 4,080 crore). The $2.3-billion (Rs 11,040 crore) acquisition cost of the UK-based luxury brands pushed the company to its first consolidated loss in at least seven years.
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