Tata Motors loses over a billion dollars in market value

Tata Motors shares tank nearly 30% biggest intra-day fall in over 15 years

Jaguar stutters to £3.4bn loss after demand stalls

JLR's sales, which have been contracting every month since July, fell 6.4% year-on-year in the December quarter to 144,600 vehicles.

Tata Motors wrote down its investment in Jaguar Land Rover by $3.9 billion due to market challenges, especially in China, technology disruptions and rising debt costs.

Speaking with CarAdvice in October a year ago, Jaguar Land Rover CEO Ralf Speth said the production slowdown was caused by something of a flawless storm.

JLR's retail sales in China, which account for about one in every seven of its cars sold worldwide, fell by 40% year on year during the quarter, overshadowing growth in the U.S. and British markets.

The automotive industry is facing significant market, technological, and regulatory headwinds.

N Chandrasekaran, chairman, said, "Tata Motors domestic business continues the strong momentum and has delivered market share gains as well as profitable growth".

The result is the company's worst quarterly loss, driven in part by a £3.1 billion ($5.7 billion) write-down on the value of its investments.

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Jaguar Land Rover says half of the exceptional charge was due to an accounting acknowledgement that investments in machinery and plants were worth less than previous calculations suggested. Sales rose by a fifth year on year in the quarter in the USA and by 18% in the UK.

Total expenditure: Consolidated expenditure jumped to Rs 78,797.08 crore in Q3 FY19 over Rs 72,303.95 crore in the same period past year. It delivered £500m of the programme in the third quarter.

Speth said: "This is a hard time for the industry but we remain focused on ensuring sustainable and profitable growth and making targeted investments that will secure our business in the future".

The company announced last month that it would reduce its global workforce by 4,500 people. This is expected to result in a one-time exceptional redundancy cost of around 200 million pounds for the luxury unit of Tata Motors.

The dour numbers prompted Tata investors to make a beeline for the exits as markets opened on Friday, with shares of the company skidding to their lowest in nine years at one point.

JLR is also launching new versions of its Range Rover Evoque and Land Rover Defender models this year as it tries to stay on the front foot with its product portfolio even as it cuts back on spending. The company also had a £1.9bn undrawn credit facility available at the end of the quarter.

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