Demand Reviving, Worst may be Over for Tata Motors
Mumbai: The worst is likely over for Tata Motors, as demand — battered by demonetisation late last year — gradually revives in the commercial vehicles segment, managing director Guenter Butschek said on Thursday.
India’s biggest auto maker by revenue is now better prepared than before to tackle acute market volatility, he added. “It requires a lot of structural interventions, all of which have been launched now,” Butschek told ET. He added that he sees a “much more predictable market in the months to come,” although adding that he didn’t “have overtly positive expectations of 2017-18,” because a lot of clarity is yet to emerge on issues such as the transition in Indian emission norms.
Tata Motors’ net profit for the Oct-December quarter plunged 96% to ₹ 112 crore, owing primarily to weaker margins on its UKbased luxury car unit Jaguar Land Rover. Its standalone let loss widened to ₹ 1,046 crore from ₹ 137 crore a year earlier, due to a fall in volumes in the medium and heavy commercial vehicle segment, primarily owing to demonetisation.