India’s Tata Motors reports $1.3-billion loss as coronavirus bites

MUMBAI, India – India’s Tata Motors on Monday, June 15, reported a loss of $1.3 billion for the first 3 months of this year as sales in its key markets of China and Europe were hit by the coronavirus pandemic.

The Mumbai-headquartered firm had just returned to the black in the previous quarter amid Chinese demand for its British luxury brands Jaguar and Land Rover.

The 98.94 billion rupees ($1.3 billion) net loss for the January-March quarter followed a net profit of 11.17 billion rupees for the same period last year.

“The auto industry faced strong headwinds in FY20 amidst a slowing economy due to multiple factors…all leading to weak consumer sentiments and subdued demand across segments,” Tata Motors chief executive Guenter Butschek said in a statement.

“Disruption in the supply chain induced by the pandemic and the nationwide lockdown in mid-March 2020 added to the problems.”

The company forecast a weak April-June – the 1st quarter of the 2021 financial year – which coincided with widespread virus lockdowns across its Europe, United Kingdom, and Chinese markets.

But it expects a gradual recovery of sales and improved cash flows for rest of the financial year. 

Shares of Tata Motors closed almost 5% lower on the Bombay Stock Exchange Sensex Index ahead of the earnings result. – Rappler.com