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Jaguar Land Rover hands Tata the biggest loss in Indian corporate history

BENGALURU/NEW DELHI — Jaguar Land Rover's owner Tata Motors Ltd stunned markets by posting the biggest-ever quarterly loss in Indian corporate history of about $4 billion on slumping China sales, sending its shares crashing as much as 30 percent. Tata Motors also warned that the Jaguar Land Rover (JLR) unit, which brings in most of its revenue, would swing to an operating loss for the year versus an earlier projection it would break even, given weak sales at the luxury British carmaker. JLR's China retail sales were cut almost in half in the December quarter as overall demand in the world's biggest auto market contracted last year for the first time since the 1990s. The firm has also been buffeted by Brexit woes and weaker business for diesel cars that account for bulk of its sales in Europe. Tata Motors turned in a third-quarter loss of 269.93 billion rupees ($3.8 billion) on Thursday, more than half its current market capitalization of $6.1 billion, mostly due to a massive impairment at JLR. Analysts were expecting a profit. "We are now taking clear and decisive actions in JLR to step up its competitiveness, reduce costs and improve cash flows and make the business fit for the future," Chief Financial Officer PB Balaji told reporters on a conference call on Thursday. JLR has taken steps to address the slide in China sales by changing its strategy to focus on profits for dealers instead of sales and incentivising retail sales over wholesale, he said. "We are encouraged by continued demand for the refreshed Range Rover and Range Rover Sport," JLR Chief Commercial Officer Felix Brautigam said in a statement. "With deliveries of the new Evoque due to start later this quarter, we look forward to building momentum." But analysts expect JLR to struggle to generate profit with China's economy projected to slow further this year after growth eased to its weakest pace in almost three decades in 2018. JLR's overall retail sales in January plunged 11 percent. The dour numbers prompted Tata investors to make a beeline for the exits as markets opened on Friday, with shares of the company skidding to their lowest in nine years at one point. The stock was down about 20 percent by 0720 GMT near 150 rupees, on track for its sharpest drop since 2003. At least four brokerages cut their price target for Tata Motors shares after its quarterly loss. Analysts at Jefferies pegged the stock at 250 rupees, versus an earlier target of 300 rupees, citing weak performance at JLR.

Tata to shed 1,100 Jaguar Land Rover jobs after coronavirus hits earnings

BENGALURU — India's Tata Motors Ltd expects to shed about 1,100 temporary jobs at Jaguar Land Rover after it raised the cost-cutting target at its luxury unit by 1 billion pounds ($1.26 billion) to ride out the disruptions caused by the coronavirus outbreak. Tata Motors expects to save 5 billion pounds in costs by March 2021 at its Jaguar Land Rover (JLR) unit, the Indian automaker's Chief Financial Officer PB Balaji said on Monday, adding 3.5 billion pounds of the savings had already been achieved. It will also reduce capital expenditure at JLR to 2.5 billion pounds for the current fiscal year, from the more than 3 billion pounds it has spent annually in previous years. "Conserving cash and prioritizing capital expenditure, and targeting investment spending to the right areas is our focus," Balaji told reporters, after the company posted a fourth quarter loss. We anticipate that up to 1,100 agency employees will be affected, a JLR spokeswoman said in a separate statement. Tata Motors is reviewing all its businesses and would consider exiting those that do not add strategic value, as part of a broader effort to save 60 billion rupees ($789 million) in its domestic business in the fiscal year to 2021. The automaker on Monday posted a consolidated fourth quarter net loss of 98.94 billion rupees, as coronavirus lockdowns across its markets ravaged sales, including at JLR. Total revenue from operations fell 27.7% to 624.93 billion rupees in the quarter, which ended March 31. JLR, which contributes the bulk of Tata Motors' revenues, reported a pre-tax loss of 501 million pounds for the period after it took a hit of 800 million pounds because of the novel coronavirus, Balaji said. He said there were signs sales were recovering in China, one of JLR's biggest markets, as well as in the United States and in Europe, with strong orders for Land Rover's sport-utility vehicle Defender and Range Rover's Evoque. JLR's boss Ralf Speth, who has led the company since 2010, will step down from his role at the end of his contract term in September. ($1 = 76.0446 Indian rupees) ($1 = 0.7954 pounds) (Reporting by Chandini Monnappa in Bengaluru and Aditi Shah in New Delhi; Editing by Shounak Dasgupta and Sriraj Kalluvila)

Range Rover versus Mercedes-Benz: Which makes a more appealing SUV?

From time to time — truth be told, all the time — the Autoblog staff enjoys a good debate on the merits and demerits of the cars and trucks we drive each week. This week, we spent some time in a brand-new Land Rover Range Rover Supercharged SUV, a model some of us think sits at the pinnacle of the luxury utility vehicle segment. Others disagree. The following is a real-life online debate that took place over the course of a few hours. Have a read, and feel free to take sides. There's a poll at the end so you can make your voice heard. Consumer Editor Jeremy Korzeniewski: Strange as it may sound, Jeremy Clarkson and I have a few things in common, most obvious of which is that we share a given name. But we also both love cars so much that we decided to turn our automotive passion into a career — with varying degrees of success, of course — and we both have come to realize over time that there's no point in trying to topple the Land Rover Range Rover as the world's best luxury off-road utility vehicle. Thing is, this universal truth isn't quite as universally shared as I think it should be. In fact, my esteemed colleague Alex Kierstein believes that Mercedes-Benz makes the most desirable four-wheel-drive off-road vehicles. He's clearly wrong, but I feel obligated to let him explain his choice, though it won't go without a rebuttal. Senior Editor Alex Kierstein: That's correct, and so am I in this regard. I'm sorry, Jeremy, but it's an irrefutable fact that Mercedes-Benz is doing the best interiors in the business now. And the interior is where you're going to spend most of your time, at least when the thing's running. The Range Rover's interior simply isn't as special, and frankly it'll be in the shop enough that you won't enjoy it. Now, stepping into pretty much any contemporary Mercedes sedan interior is a "wow" moment. They seem special — posh, exclusive, luxurious. The SUVs, all older vehicles coming due for total redesigns at some point in the future, are lagging a bit, but it's still a premium and upscale experience. Especially since performance is almost academic at this point. Anything in this class is going to be powerful, almost absurdly so. So why not go for the one that makes you feel like royalty, rather than your mechanic? JK: I just want to point out that it was you who brought reliability into this discussion.