Tata Motors, the auto unit of salt-to-software conglomerate Tata Group, posted its biggest quarterly loss ever of nearly 270 billion rupees (US$ 3.78 billion) as its UK-based subsidiary Jaguar Land Rover’s (JLR) fortunes nose-dived.
Net loss stood at 269.93 billion rupees in the December-ended quarter compared with a profit of 10.77 billion rupees ($151 million) a year ago. This is its third straight quarterly loss this year.
However, the company’s India operations posted a net profit of 6.18 billion rupees on a standalone basis. The company also improved its market share in the commercial and passenger vehicle segments.
As for JLR, the company took a non-cash charge of 278.38 billion rupees ($3.9 billion) to cover the impairment faced by Britain’s largest car maker in the three months to December 31.
Changes in market conditions, especially in China, technology disruptions and the rising cost of debt resulted in the charge. JLR is also facing disruption due to uncertainty over Brexit.
In China, JLR sales tumbled 47% against the same quarter last year, forcing the carmaker to cut production. In Europe with consumers switching over to greener hybrid fuels and electric vehicles, sales of JLR’s diesel cars remained sluggish.
In the National Stock Exchange, Tata Motors shares at 12.20 pm on Friday were down to 149 rupees, against the previous close of 182.85 rupees.