Parliament Election could hurt Sar Sales: Tata Motors

Tata Motors, one of the largest automobile companies, expects that the demand for passenger vehicles may be affected in the first half of this financial year due to the Lok Sabha elections. The Lok Sabha elections began in mid-April and will end with the counting of votes in early June.

A media Report Tata Motors Chief Financial Officer, PB Balaji has been quoted as saying that the company is waiting for the elections to end to assess the demand. He said that the Lok Sabha elections affect the demand for passenger vehicles in the country. Earlier, the Federation of Automobile Dealers Association (FADA) had said that the uncertainty over the elections could reduce the sales of automobile companies this month. The growth in passenger vehicle sales may decline to around five percent this financial year. However, Balaji expects sales growth to increase in the second half.

Tata Motors’ international wholesales of passenger vehicles (including EVs) grew 15 percent year-on-year in the fourth quarter of the last fiscal. The company sold 1,55,651 units during this period Sale International wholesales of the company’s unit Jaguar Land Rover grew 16 percent year-on-year to 1,10,190 units. In the fourth quarter, wholesales of Jaguar stood at 13,528 units and Land Rover at 96,662 units. This does not include wholesales of joint venture with Chery Automobiles in China. Sales of Chery Automobiles increased by 16 percent to 1,10,190 units. Wholesales of Tata Motors commercial vehicles and Tata Daewoo declined by 6 percent to 1,11,591 units.

The company plans to set up a factory in Tamil Nadu. This factory will manufacture luxury cars under the Jaguar Land Rover (JLR) brand. JLR’s sales in India have increased by 81 percent in the last financial year. An investment of one billion dollars can be made in this factory. Earlier, Tata Motors and JLR had signed an agreement for licensing JLR’s Electrified Modular Architecture (EMA) platform. This platform will be used in Tata Motors’ upcoming electric vehicles.