Tata Motors Passenger Vehicles has restored operations at its Sanand manufacturing facility in Gujarat after flooding disrupted production, with the company estimating the damage to the plant at around Rs 35-40 crore.
In an exchange filing, Tata Motors said operations at the Sanand unit and those of suppliers supporting the Gujarat facility have been restored. The company added that the insurance claim to be lodged for the damage is expected to be non-material.
"While the actual amount of damage is being ascertained, it will be non-material (Rs 35 crore-Rs 40 crore)," the company said in an exchange filing.
The automaker said that once the flood water receded, all necessary steps were taken to restore normal operations at the plant. It added that the disruption has had no material impact on the company's operations or financials.
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Production of the Tiago, Tigor, Nexon and Sierra models had been affected due to the floods. The Sanand facility is one of Tata Motors' key passenger vehicle manufacturing plants and produces several of the company's high-volume models.
The restoration of operations comes at a time when Tata Motors is navigating softer demand in India's passenger vehicle market. The company sold 45,199 passenger vehicles in India in July, down 11% from 50,701 units sold in the same month a year earlier. Total domestic sales, including electric vehicles, also declined during the month, reflecting a slowdown in demand.
Tata Motors PV Share Price Today
Tata Motors PV shares closed 0.33% lower at Rs 320.25 on Thursday. The stock has declined 8.4% over the past week and 4.81% in the last one month. On a year-to-date basis, the shares are down 12.87%, while they have fallen 53.56% over the past year.
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