Tata Motors sees jump in profits
PROFITS at India’s Tata Motors jumped 67 per cent during the last quarter of 2020, the company said last Friday (29), benefiting from pent-up demand that saw consumers flock to buy cars.
The Mumbai-headquartered firm, which owns British luxury brand Jaguar Land Rover (JLR), saw consolidated net profit climb to `29.06 billion (£292 million) in the October-December quarter from `17.38bn a year earlier.
The results are a strong comeback for the automobile giant, which reported losses for three consecutive quarters as the pandemic hammered demand in domestic and international markets. “Due to a
strong festive season and a clear preference for personal mobility, the (passenger vehicle) business posted its highest sales in last 33 quarters,” chief executive Guenter Butschek said in a statement.
JLR sales were up 19.1 per cent year on year in China, but lower globally as uncertainty over the pandemic and Britain’s post-Brexit future continues to weigh on demand.
Revenues rose 5.5 per cent to `756.54bn, the firm said.
Indian carmakers were struggling with low demand due to a slowdown and lack of liquidity through 2019, before the virus and lockdown dealt a further blow.