Tata Motors JLR posts loss amid challenges in China market

Tata Motors-owned Jaguar Land Rover (JLR) on Thursday posted a pre-tax loss of 273 million pounds in its latest financial results and blamed a fall in sales of its luxury vehicles on challenging market conditions in China.

The UK's largest car manufacturer reported revenues of 6.2 billion pounds, down from 6.3 billion pounds a year ago, as part of the results for the October-December 2018 three-month period. The sales of its cars for the quarter stood at 144,602 vehicles, down from 154,447 a year ago.

"Jaguar Land Rover reported strong third quarter sales in the UK and North America, but our overall performance continued to be impacted by challenging market conditions in China," said JLR CEO Ralf Speth.

"This is a difficult time for the industry, but we remain focused on ensuring sustainable and profitable growth, and making targeted investments, that will secure our business in the future," he said.

The JLR CEO also unveiled plans for a non-cash exceptional charge to reduce the book value of the company's capitalised investments.

The UK-based car giant, acquired by Tata Motors in 2008, noted that the automotive industry was facing significant market, technological, and regulatory headwinds.

Given the muted demand scenario and the associated impact on the financials, JLR said it had concluded that the carrying value of capitalised investments should be adjusted down, resulting in a non-cash 3.1 billion pounds pre-tax exceptional charge and an overall pre-tax loss of 3.4 billion pounds for the quarter.

Speth noted: "This accounting adjustment is consistent with the other decisive actions that we must take as part of our Charge' and Accelerate' transformation programmes to create an efficient and resilient business, enabling Jaguar Land Rover to counter the multiple economic, geopolitical, technological and regulatory headwinds presently impacting the automotive industry.

"We are taking the right decisions to prepare the company for the new technologies and strong product offensive that will enable a long-term future of sustainable profitable growth."