Tata Motors Ltd. didn't foresee the sharp decline in sales of its luxury car unit in China for the quarter ended September, its chief financial officer said.
Jaguar Land Rover, which contributes almost 90 percent to Tata Motors' revenue, has been suffering due to uncertainty around Brexit and China demand. China—which was driving growth for JLR till last fiscal—is now engaged in a trade war with the U.S. that's keeping consumers away from showrooms. As a result, Tata Motors' loss for the July-September period was worse than analyst estimates.
“We're looking to rationalise inventory and work with dealerships in China to improve profitability,” PB Balaji told BloombergQuint in an interaction. These tasks are part of the company's initiative, named “Project Charge”, with which it intends to save nearly £2.5 billion at JLR over the next 18 months.
Balaji said that Tata Motors also has to contend with geopolitical challenges such as the U.S.-China trade war and Brexit. “We're keenly watching out for developments.”
Watch the full interview here:
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