Tata Motors quarterly profits plunge on lower JLR China demand
MUMBAI (Bloomberg) — Tata Motors Ltd. quarterly profits plunged as demand for Jaguar Land Rover vehicles slumped in China amid a market slowdown.
Net income fell to 27.7 billion rupees ($434 million) in the quarter through June from 54 billion rupees a year earlier, the Mumbai-based company said.
Profit at the Jaguar Land Rover unit declined to 492 million pounds ($764 million) from 693 million pounds.
Jaguar Land Rover retail sales plunged 33 percent in China in the quarter, resulting in a 1 percent decline in worldwide deliveries. The luxury unit has cut its sales targets and prices in China as automakers from Toyota Motor Corp. to BMW AG warn about a slowdown in the world’s biggest auto market.
Tata Motors’ earnings were also hurt by a prolonged slump in sales of its light commercial vehicles in India.
The automaker’s revenue fell to 610.2 billion rupees from 646.8 billion rupees. Sales at the luxury unit declined to 5 billion pounds from 5.35 billion pounds.