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Automobile manufacturer Tata Motors suffers $1 billion loss as Jaguar costs hit bottom line

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Tata Motors announced a $1 billion loss Tuesday despite a strong performance in the first quarter of 2021 as restructuring costs related to its British luxury car brand Jaguar Land Rover (JLR) hit the automaker’s bottom line.

The Mumbai-headquartered firm posted a consolidated net loss of 76 billion rupees during the January-March period, narrowing its losses from 98.9 billion rupees a year earlier.

The auto giant’s revenues jumped 42 per cent, but exceptional costs worth £1.5 billion ($2.13 billion, 1.74 billion euros) related to its restructuring of JLR hurt its profitability.

“It was a strong and resilient all-round performance for us, despite the pandemic,” P.B. Balaji, chief financial officer of Tata Motors, told reporters in a post-earnings conference call.

The company reported losses for three consecutive quarters last year, as the pandemic hammered demand in domestic and international markets.

But an easing of coronavirus restrictions saw the firm’s revenues soar between October 2020 and March this year, as consumers splashed out on big-ticket items.

Renewed lockdowns triggered by a ferocious second pandemic wave in India have dampened demand for vehicles yet again, with automobile makers including Tata Motors announcing temporary plant shutdowns.

“We will continue to remain vigilant about the evolving Covid situation,” the company’s CEO and managing director Guenter Butschek said in a statement.

Butschek is due to step down on June 30 of this year with uncertainty mounting over the firm’s leadership after his replacement Marc Llistosella backed out of the role in March citing “personal reasons”.

Britain’s largest car manufacturer JLR reported a 20.5 per cent increase in revenue, led by a strong sales performance in China.

In February, JLR said it would lay off 2,000 employees in the financial year 2021-22, with a plan to go fully electric from 2025.

Tata Motors’ share price has surged 78 per cent in 2021 so far, boosted by expectations of a sustained recovery in profitability.

Its shares closed over three per cent higher in Mumbai Tuesday ahead of the earnings announcement.

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Improved version of Hyundai Creta launched in Indian market: Check it out here

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Hyundai India launched the much-awaited Creta Knight Edition in the country at a starting price of Rs 13.51 lakh (ex-showroom, all-India). This new variant is available in both petrol and diesel engine options and can be had either with a manual or an automatic transmission unit. To read more about the Creta Knight Edition, click here. In addition to this, the company has also introduced a model-year update for the Hyundai Creta with new feature additions.

The 2022 Hyundai Creta is now available in a new Denim Blue colour option and the Highline TPMS is now standard across all variants. The SX (O) trim now also gets a glossy black centre console. Furthermore, the company will offer the iMT option on the 1.5-litre petrol ‘S’ variant to further expand choices for the customers. The new S+ variant powered by a 1.4-litre T-GDi petrol engine with 7DCT now gets an additional set of features, such as –

– Smart panoramic sunroof

– 16-inch black alloy wheels

– Smartphone wireless charger

– Rear Disc Brakes

– Electronic Stability Control (ESC)

– Vehicle Stability Management (VSM)

– Hill start assist control (HAC)

– Paddle shifters

– Metal pedals

– Electric and auto-folding ORVMs

– Power window auto up/down

Mechanically, the SUV continues to be powered by the existing petrol and diesel engine options.

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