Tata Motors recently reported a sudden drop in Q2 FY25 profits and its first revenue drop in 10 quarters. This comes amid weaknesses in its luxury brand, Jaguar Land Rover, and domestic sales.
Net income for the quarter ending September 30 fell 11% to ₹3,340 crores, according to an exchange filing on Friday.
The average analyst projection expected a profit of ₹4,396 crores.
The company’s weak performance reflects a broader decline in Indian consumption, with high inflation and slowing growth. Maruti Suzuki also reported a sales drop in entry-level vehicles last week.
Tata Motors’ domestic carmaking business saw a four per cent revenue drop due to low demand, while the commercial vehicle sector reported a 14 per cent revenue decline.
However, the company expects production and wholesale volumes to recover strongly in the next two quarters.
Tata Motors is cautious about near-term demand but expects sales to rise in Q3, fueled by the festive season and infrastructure investments. The festive period boosts consumer spending, with car purchases seen as a symbol of good fortune.
A statement on Friday said they expect “all-round improvement in H2 FY25 and aim to become net debt-free by year-end.”
The carmaker recorded its highest-ever monthly registrations, which aided in bringing down inventory to normal levels, he added.
These recently launched models are expected to boost sales in the upcoming months.
