“Tata Motors disappointed us with a dismal JLR performance shadowing a good stand-alone performance,” said Ravi Shenoy, the associate vice-president of midcaps research at Motilal Oswal Securities Ltd. Shenoy is just one of the many analysts, who will be revising their forecasts on Tata Motors this year.
Tata Motors shares fell by 1.9% to Rs. 396.25 on BSE despite great improvement in the sales of medium and heavy commercial vehicles. Although the company reduced its loss in India from Rs. 1846 crore last year to Rs. 287 crore this quarter, it has suffered great losses due to vehicle damages in the Tianjin port explosion of August. The reported loss of Rs. 2493.18 will take some time to recover with insurance. The Jaguar Land Rover unit in China fell down by 32%, posting a loss of $139 million.
The company is in the midst of managing the situation.
“Car sales in China advanced in October for the first time in four months,” said Ralf Speth, chief executive at JLR. He also suggested that models like the new XE and XF will help in boosting growth. JLR sales in UK and other parts of Europe and North America are quite encouraging.