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Is Tata Motors Surviving On Commercial Sales?
Tata Motors' commercial vehicle operations saw higher growth with a 13 per cent hike to 113,186 unit sales. Passenger vehicle sales including Tata, Fiat and Jaguar Land Rover branded vehicles saw a a10.7 per cent dip.
Gross revenue for the first quarter stood at Rs.12,925 crores posting a 14.4 per cent hike. Operating margins and operating profits suffered during this quarter due to cost pressure resulting from increased commodity prices.
Jaguar Land Rover, Tata Motors' British car brands registered a 4.9 per cent increase in sales during the first quarter at 62,090 units. The British brands generated revenues of GBP 2,712 million marking a 19.9 per cent growth. The British brands will soon begin full scale production of their models in India. The Freelander 2 SUV is already being built in India in CKD form.
The quarterly results of Tata Motors clearly indicate the dominance of commercial vehicles in the group. It is also clear that passenger vehicle sales have not been at expected levels. Tata has already responded to reduced car sales by deciding to launch model specific showrooms for the Nano small car. It is yet unclear if this decision will translate into sales.
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