Tata Motors, the country's leading automaker, reported a loss of Rs 3,679.66 crore in the first quarter of the Current financial year (2019-20), which is double than the same period last year. The company had a loss of Rs 1,902.37 crore in the corresponding quarter last year. Tata Motors said in a statement that there was a huge downturn in the domestic auto industry.
Not only this, the auto industry is also languishing in the auto industry. Jaguar Land Rover, the subsidiary of Tata Motors and Britain's largest auto manufacturing company, said that sales of industry in most areas have come down. Jaguar Land Rover's global retail sales declined by 11.6 percent compared to last year.
Tata Motors shares closed at Rs 144.35 per share on Thursday with a loss of 4.56 percent against the previous session on the Bombay Stock Exchange.
Consolidated income from all the works of Tata Motors also fell 8 percent year-on-year to Rs 60,830 crore. Tata's Commercial Vehicle and Passenger Vehicle business contributed greatly to this decline. The company's earnings in these two businesses stood at Rs 14,309 crore, compared to Rs 17,290 crore in the same period a year ago.
Against this, if Jaguar Land Rover talked about, its income fell to Rs 45,661 crore in the first quarter, compared to Rs 48,215 crore in the same period a year ago.
However, this result also seems that Jaguar Land Rover has succeeded in reducing its deficit. The company has achieved this success with cost-cutting measures such as layoffs, cost reduction, reduction in capital expenditure, China is the largest market for JLR, but there is also softening in demand, due to which the company's fiscal year 2018-19 declined by 34 percent.
JLR sold 1,28,615 vehicles in the first quarter of this financial year, which is 11.6 percent lower than last year. In the June quarter, Tata Motors's total passenger vehicle sales declined by 15 percent. Similarly, sales of commercial vehicles have fallen by 20 percent.
Significantly, there is a slowdown in the auto sector in the country. The fall in auto sector has been continuing for several months. The country's auto industry is going through a bad phase these days. Due to the sale of Passenger Vehicle (PV) and cars, the industry is constantly shocked. The situation is that the country's largest automaker Maruti Suzuki has made huge cuts in its production. According to the auto industry experts, if such conditions are there, the clouds of crisis can be on jobs.
