"I am delighted with the progress made by the domestic business on their "Turnaround 2.0" strategy", Natarajan Chandrasekaran, chairman, Tata Motors, said in a statement.
Jaguar Land Rover posted a quarterly loss as higher incentives in China and Europe's diesel slump hit earnings.
In a statement following the financial results filing, Tata Motors chairman, N Chandrashekharan said, "JLR faced multiple challenges including temporary issues like China duty impacts as well as market issues like diesel (engine) concerns in the United Kingdom and Europe". Towards this, we will step up all round execution. The adverse impact of the China duty reduction along with unfavourable currency revaluation and higher depreciation provision as per the company's new capitalization policy has led to an EBIT loss of GBP224mn, with EBIT margins at -4.3 per cent (at -3.7 per cent including share of profit from JVs). We will leverage our product portfolio to grow faster and drive down costs to improve operating leverage of the business.
The global sales of the Jaguar F-Pace and Range Rover Evoque sport-utility vehicles spiked 5.8 per cent as compared to last year's 145,510 vehicles in the last quarter. Total sales fell 6.7pc year on year to £5.2bn as JLR bemoaned a series of challenges from fears of a trade war to Brexit uncertainty and a consumer backlash against diesel.
In other markets including Europe, JLR had taken a planned dealer stock reduction as it faced uncertainty over additional diesel taxes in the UK.
Speth said JLR would focus on reducing costs while still increasing sales. Despite the weak Q1, the management has reiterated their target of 4-7 per cent EBIT margin for the full year on the back of ramp-up of new models (Electric I-Pace) and new lower duties effective in China. "We will also calibrate our capital spends to minimise cash outflow", he said.