Tata Motors, the owner of Jaguar Land Rover, is suffering from slumping sales as the first-quarter profits are released. Tata’s Indian passenger car sales fell and Jaguar deliveries have also decreased. Surprisingly, however, Tata’s net income rose to twenty billion rupees in the three months ending on June 30th. This is up from 19.9 billion rupees a year earlier, but misses expectations.
Tata Motors confirmed an 8.5 percent decrease in Indian passenger car sales during the quarter caused by rising interest rates. The rising interest rates reduced demand throughout the country where eighty percent of purchases are funded by loans. Jaguar sales were down twenty-seven percent in the period cause by a sparse lineup and limited presence in the booming Chinese market.
[Source: Automotive News]