Tata Motors denies reports claiming it is planning to sell stake in Jaguar Land Rover
Tata Motors on August 17 issued a statement "categorically" denying reports that stated the company plans to sell its stake in Jaguar Land Rover (JLR). Several media reports had previously claimed that Tata Motors may be looking at selling its stake in JLR owing to the losses.
"Unconfirmed and unsubstantiated reports have been published by some media alleging that Tata Motors may sell stake in Jaguar Land Rover (JLR).
Tata Motors categorically denies and dismisses any such intent," the company said, adding that Jaguar Land Rover is and remains a key pillar of Tata Motors and the wider Tata Group.
Tata, in the statement, said that the company had recently announced results for Q1 and have indicated that it is maintaining solid liquidity despite the COVID-19 pandemic.
"We expect to be cash positive from Q2 onwards. Jaguar Land Rover business remains strong as it transitions to new electrified, autonomous and connected technologies to support its Destination Zero ambition," it said.
Tata Motors, the commercial vehicle major and the owner of Jaguar Land Rover, reported a consolidated loss of Rs 8,443.98 crore on July 31, for the quarter ended June 2020 as lockdown in several countries affected JLR as well as domestic businesses.
The loss, in fact, was significantly higher than Rs 3,679.66 crore loss posted in Q1FY20 and Rs 9,863.75 crore loss in Q4FY20.
Revenue from operations during the June quarter fell significantly to Rs 31,983.1 crore, compared to Rs 61,467 crore in the year-ago period.
In the JLR segment, the company said COVID-19 resulted in temporary retailer and plant shutdowns, significantly impacting sales and profits.
Retail sales of 74,067 vehicles in the segment declined 42.4 percent YoY but improved month by month through the quarter with June down 24.9 percent, said the company.
JLR segment's revenue was 2.9 billion pound in the quarter and the company made a pre-tax loss of 413 million pound. However, this was only down 18 million pound year-on-year, said the company.