Parliament Election could hurt Sar Sales: Tata Motors

Tata Motors, one of the big automobile companies, estimates 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 vote counting 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 be over to assess the demand. He said that Lok Sabha elections have an impact on the demand for passenger vehicles in the country. Earlier, the Federation of Automobile Dealers Association (FADA) had said that the sales of automobile companies may decrease this month due to uncertainty regarding the elections. In this financial year, the growth in sales of passenger vehicles may decline to around five percent. However, Balaji expects sales growth to increase in the second half.

Tata Motors’ international wholesales of passenger vehicles (including EVs) have grown by 15 percent on a year-on-year basis in the fourth quarter of the last financial year. During this period the company has sold 1,55,651 units. International wholesales of the company’s unit Jaguar Land Rover have increased by 16 percent on year-on-year basis to 1,10,190 units. Jaguar’s wholesales in the fourth quarter were 13,528 units and Land Rover’s were 96,662 units. This does not include wholesales from the joint venture with Chery Automobiles in China. Chery Automobiles’ sales 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. In this factory, luxury cars will be manufactured under the Jaguar Land Rover (JLR) brand. JLR sales in India have increased by 81 percent in the last financial year. One billion dollars can be invested in this factory. Earlier, Tata Motors and JLR had signed an agreement for licensing of JLR’s Electrified Modular Architecture (EMA) platform. This platform will be used in the upcoming electric vehicles of Tata Motors.