Tata Motors shares fall as it fails to meet analysts’ estimates

Article by Christian A., on August 10, 2012

As the demand for luxury cars declined, so did the profit of Tata Motors (which owns Jaguar Land Rover). In fact, it didn’t meet analysts’ estimates. In the quarter ended June 30, Tata Motors’ net income increased by 12% to 22.45 billion rupees ($407 million). In a statement last Thursday, the Mumbai-based company said that it failed to meet the 27.3 billion rupee median of 35 analyst estimates that Bloomberg put together.

Jaguar Land Rover reported a profit of 236 million pounds ($369 million), which is 22% below the median estimate. These results may lead to concern that demand for Jaguar vehicles is declining as Europe's sovereign-debt crisis is ongoing and China’s economy slows down.

Jaguar Land Rover’s sales increased by 34% to 83,452 vehicles in the last quarter. From this figure, Jaguar sold 11,774 of its vehicles while Land Rover accounted for 71,678 units. Sales in the first quarter climbed by 48%.

In June, Jaguar’s sales fell for the first time in seven months. Meanwhile, deliveries of Land Rover sport utility vehicles (except for the sold-out Evoque) decreased for a third month, CLSA Asia-Pacific Markets revealed.

After sales growth slowed last quarter, Jaguar Land Rover CEO Ralf Speth faced pressure to give Jaguar's aging designs an overhaul and to raise the appeal of Land Rover to more than just its Evoque model.

Basudeb Banerjee, an analyst with Quant Broking Pvt in Mumbai, said that the uncertainty in Europe has resulted to the sluggish sales of JLR cars. He thinks that there may be a “lacklustre” performance next quarter. He pointed out further that the third quarter is “crucial.”

Topics: tata motors, shares

If you liked the article, share on:

Comments

Recommended

The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 2017
Several automakers including Porsche, Volkswagen, Smart and even Land Rover have all been victimized by cheap Chinese copycats. And if you haven’t seen it yet, the most recent one would...
by - October 20, 2017
The Mercedes-Benz G-Class has been around for quite some time now but to bid it farewell, the company has launched the Mercedes-AMG G65 Final Edition. Mercedes will only build a...
by - October 20, 2017
Have you ever wondered what you can you buy with $9,365 in your pocket? Well, you have quite a lot of options. In fact, you can even purchase a used...
by - October 20, 2017
The Audi A7 Sportback, whether you would like to call it a sportback or a four-door coupe, has always been a beautiful car. And this week, the 2019 model year...
by - October 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries