[simeonovitch]

This showed up in my subscriptions, so I'll just leave it here instead of creating a new thread.

https://www.youtube.com/watch?v=q3gxOpv8cxc

[SpideyBoy]

Tata Motors Q1 net loss nearly doubles to ₹3,680 cr on lower JLR sales

- Jaguar Land Rover reported that its net loss widened to 402 million pounds in June quarter due to slowdown in China

- Revenue for the quarter fell 7.77% to ₹60,830 crore

Tata Motors Ltd on Thursday said its net loss for June quarter nearly doubled due to weak demand in the domestic market and a slowdown in China, which has hit Jaguar Land Rover sales. The company reported a consolidated net loss of ₹3,680 crore in the quarter as against ₹1,863 crore a year ago. Bloomberg analysts on average expected a loss of ₹2,036 crore.

On an annual basis, revenue for the quarter fell 7.77% to ₹60,830.16 crore.

The luxury unit of the Indian auto firm, Jaguar Land Rover, reported that its net loss widened to 402 million pounds in June quarter 2019 as against a loss of 210 million pounds for the same quarter last year.

"The continued slow down across the auto industry due to weak consumer sentiments, liquidity stress and the impact of axle load effect particularly in medium/heavy duty, impacted overall demand," said Guenter Butschek, CEO and MD, Tata Motors.

Source

[i74js]

It seems almost every player is bleeding because of slowdown across regions (not just India). Tata is no exception.

From an Indian perspective there are few points for consideration:

- Increase in cost of finance resulting in poor offtake of vehicles
- Upcoming crash testing norms
- Induction of Euro VI from April 2020
- No clear policy on EVs and Hybrid vehicles
- Overlooking auto sector in this year's budget

If the situation doesn't find a redressal at the policy level within the present fiscal; the sector will continue to bleed for next 2 - 3 years.

[yd_gli]

TML being solely dependent on the Indian market is probably making things worse for them as compared to other OEMs who have other markets to balance things out. JLR is another burden around their neck which will sink them if they dont find a way out of the mess soon.

The news of Tata continuing with the Hexa post BS6 renewed my interest in the vehicle and I was the dealer in Pune on Tuesday. The showroom in the heart of the city was completely empty at 6:30 in the evening and they didnt even have a Hexa on display. The sales staff couldn't care less if there was a potential customer present and I had to ask a couple of people for help. The moment I mentioned Hexa they lost interest and it didn't seem like they were interested in selling it. I had to literally request them for a quotation which they provided reluctantly and there has been no follow up since. Given the current market conditions, one would assume they would jump at the opportunity to sell a car worth 20lakhs but it was quite the opposite. Their sales staff needs to understand where things stand for TML at present. I don't know why but the TML showroom experience never inspires any confidence in their products.

[slango97]

Tata might find it beneficial to look at making some of their dealerships more upscale (like Nexa) to sell their premium offerings. They should have specifically trained staff for these vehicles as those in the regular dealerships simply don't know much owing to the low customer count.
I agree with the above comment that dealership experience is lacking. I had a similar experience while researching the Nexon and had to complain to the management as I was told to wait and then was ignored for 45 minutes.
I, like others, really want our homegrown brands to succeed. But while they are making better products, other parts of the marketing/sales/ownership experience continue to put people off or keep them in the dark.

[SpideyBoy]

Tata Motors scouts for partners to fund JLR's capital expenditure needs

Jaguar Land Rover (JLR) Automotive, the UK subsidiary of Tata Motors, is looking for partners to fund its massive capital expenditure (capex) needs.
It has already pared capex by almost a fifth in the last 12 to 18 months and may have to do more in the wake of multiple headwinds. Speaking to shareholders at the 74th annual general meeting (AGM), N Chandrasekaran, chairman, Tata Motors, said the company is weighing proposals for a tie-up.
“The only way to handle the need for capex and additional investments is through partnerships. As we want to spread investments across larger volumes, and there are many discussions from tactical to strategic, these opportunities keep coming and we keep evaluating them. As long as this is in the interest of Tata Motors, we will keep looking at a partnership to address capex,” said Chandrasekaran.

The chairman of Tata Group’s holding company regretted the fact that it hasn’t been able to pay any dividend yet again.

“It is disappointing to know the company has not been able to pay dividend for a number of years. This is despite a profit of Rs 2,021 crore. Unfortunately, the accumulated loss on a standalone basis is high, and it does not allow us to announce a dividend,” added Chandrasekaran in his opening remarks.

Source

[SpideyBoy]

CARE Ratings downgrades Tata Motors with negative outlook on JLR worries

- CARE Ratings in a press release said it has downgraded the rating on the long-term bank facilities of Tata Motors (TML) to 'AA-/Negative' from 'AA/Stable', but reaffirmed rating on short term bank facility and commercial paper at 'A1+'.

"The revision in the rating of TML factors in the subdued operating performance reported by its key subsidiary Jaguar Land Rover Automotive PLC (JLR) for FY19 and Q1FY20," the rating agency said.

JLR's retail sales volume remained weak and reported year-on-year (YoY) decline of 5.8% in the entire financial year 2018-19 and 11.6% in June quarter of FY20 on the back of headwinds faced in China and weak consumer demand amid uncertainties around diesel vehicles in Europe.

According to CARE, the uncertainties revolving around Brexit, geopolitical risks like the possibility of tariffs imposition by US government on import of vehicles, slowdown witnessed in China and uncertainties related to diesel powertrain are expected to keep JLR's sales volume under pressure in the medium term.

Last week, CRISIL lowered the rating of Tata Motors by a notch to 'AA-' on weakening of outlook on the business risk profile of JLR.

Earlier in June, global rating agencies Moody's Investors Service downgraded Tata Motors' credit rating and kept the outlook negative due to high cash burn at its British arm Jaguar Land Rover and geopolitical risks.

Ahead of the announcement, shares of Tata Motors closed trade at Rs 120.75 apiece, down 0.37 per cent, on the Bombay Stock Exchange on Monday.

Source

[SpideyBoy]

Brexit: JLR to suspend all UK production for a week over no deal concerns

All three of the company's car manufacturing plants and one engine plant in the country will be closed for seven days starting 4 November this year.

UK is scheduled to leave the European Union on 31 October.

"This prudent decision reflects the need to adjust production in the face of ongoing uncertainty caused by global external headwinds, including Brexit, which have impacted our sales," the company said in a statement.

Carmakers in the country have raised concern that a no-deal Brexit will affect production as the industry depends on a lot of parts being imported into the country.

“We cannot think about it, we just have to do it,” Ralf Speth, the chief executive of JLR said about suspending production, as quoted by the Guardian.

“I need 20 million parts a day and that means I have to make commitments to my suppliers. I have to have every and each part available and I have to have it just in time,” he said.

Source

[SpideyBoy]

Tata Motors reports lower-than-expected loss at Rs 217 crore, margins improve to 12.4%

Auto major Tata Motors on Friday posted a consolidated loss of Rs 216.56 crore for the quarter ended September 30 against a loss of Rs 1,048.80 crore in the same period last year.

“Jaguar Land Rover has improved its performance this quarter and delivered a well-rounded performance. In particular, the improvement in China on the back of better operational metrics is reassuring,” Tata Motors said in a release.

Guenter Butschek, CEO and MD of Tata Motors said that the Industry was grappling with a long and sharp slowdown.
“Growth continues to be impacted by subdued demand, higher capacity from the new axle load norms, liquidity stress, low freight availability, weak consumer sentiment and general economic slowdown. The sharp market decline over the last few months has impacted our Q2 performance as well which is disappointing. With the onset of festive season, we are seeing initial green shoots this month with better retails in passenger vehicles,” he added.

Source

[wheelguy]

Jaguar Land Rover sees growth in Q2 FY2020 with improved performance in China.

The company reported a pre-tax profit of 156 million pounds (Rs 1,415 crore) with its wholesales increasing by 2.9 per cent at 134,489 units. Commenting on the development, Dr Ralf Speth, Jaguar Land Rover's CEO said: “Jaguar Land Rover has returned to profitability and revenue growth. This is a testament to the fundamental strength of our business, our award-winning products, new technologies and operating efficiencies.”

“We were one of the first companies in our sector to address the challenges facing our industry. As such, it is encouraging to see the impact of our 'Project Charge' transformation programme and improvement initiatives in the China market started to come through in our results,” Dr Speth added.

Revenue increased 8 percent year-on-year to £6.1 billion (Rs 55,339 crore), driven by higher wholesales (up 2.9%) and favourable product mix. While total retail sales were down slightly (-0.7%), performance in China improved sharply, up 24.3%. Global retail sales of the new Range Rover Evoque were up 54.6%, the Range Rover Sport up 17.5% and Jaguar I-Pace retails were up to 2,593 units.

As per the statement issued by JLR, the company generated pre-tax profits of £156 million in the quarter, a YoY growth of £246 million (Rs 2,231 crore). The improvement reflects favourable wholesale volume and mix, operating costs, depreciation and amortization, and foreign exchange.

The company’s Project Charge transformation programme contributed £162 million (Rs 1,469 crore) of cost improvement and £285 million (Rs 2,585 crore) reduction in investment spending in the quarter. “With £2.2 billion (Rs 19,954 crore) efficiencies achieved to date, Jaguar Land Rover remains on track to achieve the full targeted £2.5 billion (Rs 22,681 crore) by 31 March 2020 and further improvements beyond then” the company added in a statement.

Source: Autocar Professional

[recshenoy]

https://www.moneycontrol.com/news/te...e-4604481.html

“We had to initiated a write-off of around Rs 230 crore in the passenger vehicle business in the September quarter on those models and platforms that we don’t intend to take forward,” PB Balaji, CFO, Tata Motors, told analysts.

[wheelguy]

JLR's turnaround in sight, forecasts Motilal Oswal, it also forecasts that the worst is over for Jaguar Land Rover's India business now.

The British carmaker owned by Tata, has endured a turbulent operating environment over the last two years, led by a troika of adverse macro, product mix and market mix. The company underperformed in China due to product quality issues, high inventory, high discounts and low dealer profitability.

As Motilal Oswal claims, part of these challenges are being addressed, especially the product and market mix issues. The company has also taken initiatives to improve sales in China. With the Land Rover leading JLR's product pipeline, the company is planning to roll out four to five cars under the SUV maker brand over the next 2-3 years.

Sources: ET Auto, JLR, and MOFSL

[volkman10]

Tata Motors Group global wholesales down 64% to 91,594 units in Q1 FY21.

Tata Motors’ commercial vehicles and Tata Daewoo range in Q1 FY21 were at 11,598 units, down by 89 percent as compared to Q1 FY20.

Global wholesales for the Tata Motors owned British automaker Jaguar Land Rover were 65,425 vehicles. Jaguar wholesales for the quarter were 17,971 vehicles, while the Land Rover wholesales for the same quarter were 47,454 vehicles.

Link

[volkman10]

Tata Motors posts a mammoth consolidated net loss of over Rs 7,600 crore due to exceptional losses related to subsidiary Jaguar Land Rover.

Tata Motors Posts $1 Billion Loss As Jaguar Costs Hit Bottom Line.

The Mumbai-headquartered firm posted a consolidated net loss of ₹ 7600 crore during the January-March period, narrowing its losses from ₹ 9,890 crore a year earlier.

The company’s consolidated net losses narrowed from the year-ago quarter, which was marred by Covid-related lockdowns across major markets such as India, China and Europe.

Link

[volkman10]

Tata Motors reports Q1 FY22 loss at INR 4450 cr.

reported a consolidated loss of INR 4450.12 crore ($598.04 million) for the quarter ended June 30, compared with a loss of INR 8443.98 crore during the same period last year.

Tata Motor’s British arm Jaguar Land Rover (JLR) posted revenue of GBP 5 billion in the first quarter, 73.7% more than in the Q1of the previous year.

JLR retail sales in the first quarter were 1,24,537 vehicles, up 68.1% year-on-year as sales continued to recover from the impact of the pandemic, but shortage of semiconductor supplies constrained production

Link