Tata Motors sees demand revival by June after tax cut of up to ₹12 lakhs

By P R Sanjai and Haslinda Amin 

Jaguar Land Rover’s Indian owner is seeing consumption demand reviving in the world’s most populous nation by end of June after the Narendra Modi-led government doled out $11.5 billion in tax cuts for the middle class. 

The tax changes will be implemented from April 1 and “people will see more money in their pockets,” P B Balaji, group chief finance officer at Tata Motors Ltd. said in an interview with Bloomberg Television, adding that a spurt in consumer demand should be visible in the April to June quarter after several months weakness.

 

More disposable income with the consumers will mean confidence to spend and that will have a multiplier effect in the Indian economy, Balaji said. “When consumption starts going up, my trucks start plying more and more.”

 

 

The fiscal measures will help provide significant relief to India’s massive middle class and help cushion the economy against global headwinds amid tariff threats by the US President Donald Trump — a dynamic that Balaji said the car maker was watching closely.

 

While the Chinese market is seeing some weakness, Balaji said he’s monitoring the US tariff threats but hasn’t reassessed Tata Motors’ strategy in any way yet.

 

“Obviously you wouldn’t want to work correct on this front, because it’s also a moving target at this point in time,” he said, explaining that Trump’s policy actions were still playing out.