The maker of Safari and Harrier SUVs garnered lower passenger vehicle revenues during the quarter due to slow consumer demand and seasonal factors, it said. It added that JLR’s revenue was impacted by temporary aluminium supply constraints. Tata’s commercial vehicle sales were hit by slowdown in infrastructure projects in India, lower mining activity, and an overall drop in fleet utilisation due to heavy monsoon rains.
In an earnings call, Balaji said vehicle inventory has been normalised by October-end. “As far as production is concerned, we will meet whatever demand is there in the market. We don’t have stress on that front. We know that October is going to be a strong month, but we have to be sure that we have not pulled forward demand from November.”
Balaji expects the second half of FY25 to deliver better performance helped by easing of supply challenges and a revival in demand.
Tata Motors’ consolidated net profit fell 10% year-on-year to ₹3,450 crore in the September quarter, while consolidated revenue from operations dropped 3.5% to ₹101,450 crore.
Tata Motors’ passenger vehicle business recorded a revenue of ₹11,700 crore in the quarter, a 3.9% decline from a year earlier. Vehicle sales during the quarter fell 6.1% to 130,500 units. “The Passenger Vehicle industry in Q2 witnessed around 5% decline in registrations, resulting in the continued build-up of channel inventory. Sales of EVs were additionally impacted by the lapse of certain subsidies,” said Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.
Revenue of Tata Commercial Vehicles fell by 13.9% to ₹17,300 crore due to a 20% drop in domestic wholesales at 79,800 units.
Revenue at JLR was impacted by temporary aluminium supply constraints, the company said. Nearly 6,029 vehicles were also kept on hold for additional quality checks. Revenue for the quarter fell by 5.6% YoY to £6.5 billion. However, the full-year guidance for revenue was kept unchanged at £30 billion.