Education

Tata Motor’s cost focus means little when chips are scarce

By Nick J Adam

In the last three months, Tata Motors has underperformed the BSE Auto index with headwinds emerging from the supply side.

Synopsis

The focus on cost control can be gauged from the fact it saved 150 million at JLR, by curbing variable marketing expenses and implementing a 10% reduction per car in vehicle cost. In the domestic market, the commercial vehicle business was able to remain in Ebitda breakeven even after revenue dropped to nearly half of the March quarter.

ET Intelligence Group: Tata Motors delivering a pre-tax loss of more than ₹2,500 crore for the first quarter of FY22 may not surprise the Street, amid the continuing chip shortage curbing production at UK subsidiary Jaguar Land Rover and lockdowns during the second wave of the pandemic affecting sales in India.

The financial performance also demonstrates the company’s efforts to control costs to bring down the break-even level, but those had

ET Bureau

4 mins read, Last Updated:

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Nick J Adam 105178 posts