In a surprise revelation, Tata Motors Chairman, N Chandrasekharan has revealed to the media that every car made by Tata Motors is losing money. This statement comes at a time when Tata Motors is still in celebration mood after they recently won a government contract to provide 10,000 electric cars.
Ironically, they managed to win this contract by quoting the lowest price (Rs 11.2 lakh, excluding GST). It is not clear if Tata Motors will be losing money on this order of 10,000 vehicles as well or not.Indica has been on sale for many years now. It is also exported.
Speaking of losses being made by the Nano, Chandrasekharan stated that these losses are small of about 4% of total losses noted in the passenger vehicle segment. It does not matter whether the Nano is out of production or not, it is not going to make much difference to losses. However, the company is keen to note a complete turnaround in the PV segment to ensure that it is profitable.
Ever since Tata Motors acquired Jaguar Land Rover in 2008, the British car unit has been making profits and accounting for nearly 85% of the company’s INR 2.8 lakh crore revenue and all its profits. Tata Motors new car launches are seeing better results which indicate that the company is on the road to becoming more profitable.
In 2015 the Tata Tiago hatchback was launched and is now the company’s best seller, competing with the Maruti Suzuki Celerio. Monthly volumes on an average, stood at 7,000 units while in September 2017, a total of 8,316 units were sold.
The new Tata Tigor compact sedan, Tata Tiago and the Hexa crossover are all doing reasonably well and the newly launched Tata Nexon compact SUV received tremendous response with 2,772 units sold to date. Fresh investments into new product development at Jaguar Land Rover are also on the cards which should signal better profitability ahead for the company.