(Bloomberg) — Jaguar Land Rover’s Indian parent reported a quarterly profit that missed estimates as a broader consumption slowdown in its home market hurt sales of cars as well as commercial vehicles.
Net income for the Mumbai-based Tata Motors Ltd. fell 22% to 54.51 billion rupees ($630 million) in three months ended Dec. 31, compared with a year earlier, according to an exchange filing Wednesday. That fell short of the average analyst estimate of 64.35 billion rupees.
Revenue advanced 2.7% to 1.14 trillion rupees, missing the analyst estimates by a small margin. Revenue from Tata’s commercial vehicles segment slipped 8.5% while passenger vehicles saw a 3.9% dip. Total costs rose 3.8% to 1.08 trillion rupees.
The underwhelming show by Tata Motors highlights the continuing pain from a consumer slowdown in the world’s most populous nation that has seen declining wage growth and elevated inflation. The carmaker is also facing economic challenges in China, where weak demand and consumer preference for electric vehicles are curbing sales of traditional top-end cars.
The company said in the filing that it remains watchful on the overall demand situation, particularly in China. JLR’s pretax net fell 17% to GBP523 million ($649 million).
The country’s biggest carmaker Maruti Suzuki India Ltd. earlier on Wednesday also reported a profit miss, squeezed by higher input costs mainly due to rupee’s sharp depreciation against the US dollar that raw material imports pricier. The sector leader rolled out its first EV earlier this month as competition intensifies in a segment that has so far been dominated by Tata Motors.
–With assistance from Ravil Shirodkar.
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