Tata Motors, which launched two vehicles last month, has plans to bring in some more vehicles to boost its sales. The car maker, while announcing its second quarter results agreed that the first half of this fiscal had been weak for the company. Tata's UK subsidiary, however, did not disappoint the car maker whose sales remained healthy owing to the strong demand of Range Rover Evogue and Range Rover Sports.
Tata, in the second half of the current fiscal, plans to introduce six new models in the passenger car space and 25 models in the commercial vehicle segment. These launches are planned by the company to boost its dipping sales in the domestic market which is mainly because of strong competition from other car makers
Karl Slym, managing director of Tata Motors said, “We have a pipeline of new product launches in all segments, including refreshes. We will make sure we enter all segments that are currently driving the volumes.”
A senior company official added, “With festive season and better consumer sentiment, we believe that there will be some uplift in the demand in the second half.”
Tata, which hasn't had a very good year so far managed to reach the sales figure of 136,353 units, a growth of 4.8 per cent, when compared to the same period last year. Sales of passenger vehicles increased by 11.6 per cent to 72,603 units. Tata Motors' overall profit in the second quarter of this financial year, which grew by 10.55 per cent to 2,075 crore in comparison to the previous year, was lower than expected.
Revenue of the company increased by 20 per cent to 43,403 crore this quarter over the same period last year. Jaguar Land Rover revenues for the current quarter remained £3.29 billion, an increase of 12.8 per cent in comparison to the second quarter last year, when it was £2.91. The operating margin for Tata's domestic sales dipped by 5.9 per cent in the second quarter over the same period in 2011.
An analyst said, “The second-quarter numbers are below expectations on a net profit level, while on an operating level it is marginally lower. With aggressive plans, we expect the company’s second half to be better than the last year.”
The second quarter results and the announcement made by the car maker could be seen on the share market, where Tata's shares ended 0.9 per cent higher.
Now that the car maker has plans to flood the market with some new launches, it would be good to see if these models manage to boost the dipping sales of Tata.
