Auto major Tata Motors sales increase 27% to 49,669 units in October

 The company had sold 39,152 vehicles in October 2019, Tata Motors said in a statement.

Passenger vehicle sales during the previous month surged 79 per cent to 23,617 cars as compared to 13,169 units in October 2019.

Total CV sales grew 2 per cent to 28,472 vehicles in October as against 28,002 vehicles in the year-ago period, Tata Motors said.

Commercial vehicle domestic sales stood at 26,052 in the previous month. It was 25,893 units in October 2019, the statement said.

Commercial vehicle exports grew 20 per cent during October to 2,420 units against 2,019 a year ago, according to the statement.

Tata Motors ties up with HDFC Bank for financing of passenger vehicles

 Tata Motors on Saturday said it has collaborated with HDFC Bank for financing of its passenger vehicles.

Through the partnership, the company said it has introduced two new schemes -- 'Gradual Step Up Scheme' and 'TML Flexi Drive Scheme' with an eye on making its products more accessible and driving up sales in the festive season.

The schemes will be available till the end of November 2020 and can be redeemed on the entire new BS-VI range of cars and SUVs along with the company's EV range, Tata Motors said in a statement.

Under the Gradual Step Up scheme, customers can avail EMI options as low as Rs 799 per lakh per month, depending on the product and variant. The EMI payments gradually increase over a period of 2 years depending on the payment convenience of the buyer, it added.

Flexi Drive scheme offers the option to the consumer to choose any three months every year, where s/he can pay a minimum EMI of Rs 789 per lakh per month, depending on the product and variant as per convenience.

This is aimed at helping customers map their EMI payment properly so that they can tide over the high outflow months easily, giving them the flexibility and power to choose, the company said.

Commenting on the collaboration, Tata Motors Head - Marketing, Passenger Vehicle Business Unit Vivek Srivatsa said, "This is in alignment with our constant endeavour to make safe personal mobility solutions more affordable and accessible to individuals and families, while contributing to the joy of this year's festive season."

HDFC Bank Country Head - Retail Lending Arvind Kapil said, "We believe this partnership offers affordable and viable financing solutions, in that, creating a valuable proposition for our customers, thereby facilitating the ownership of their dream car."

Tata Motors said it is also providing up to 100 per cent ex-showroom financing on the entire PV product range under both schemes.

Covid-19 impact: S&P downgrades Tata Motors ratings, keeps outlook stable

S&P Global Ratings has downgraded Tata Motors to more vulnerable to non-payment grade 'B' citing weaker-than-expected credit metrics owing to the disruptions and economic impact from the coronavirus pandemic.

The ratings agency which had earlier rated Tata Motors B+ has, however, kept the outlook on the company stable.

"The impact of COVID-19 on the global automotive market will make a large dent in the recent good progress that JLR's management has made in steering the business back to profitability and improving credit metrics. In turn, this would delay the improvement we had expected in Tata Motors' credit profile," S&P said in a statement.

It further said the previous 'B+' rating on Tata Motors was predicated on expectation that revenues and profit margins at both Jaguar Land Rover (JLR) and Tata Motors' Indian operations would improve steadily in fiscals 2020-2022.

"Even before the COVID-19 outbreak, JLR's sales volumes for fiscal 2020 were likely to decline, while the Indian operations were affected significantly by structural changes in the commercial vehicle segment and a slowing economy," it stated.

ALSO READ: Coronavirus outbreak, recession cloud credit quality outlook, says CRISIL

S&P said it has now "altered our assumptions given uncertainty in production volumes and demand following the pandemic. We now forecast Tata Motors' consolidated revenues to decline about 5 per cent in fiscal 2021 following a sharp revenue drop in fiscal 2020."

The ratings agency further said it views positively the management's focus on conserving cash amid the changes in operating conditions.

"We expect consolidated capital expenditure (capex) in fiscal 2021 to be at least 20 per cent below fiscal 2020 levels.

Management has also identified significant further cost-cutting areas at JLR under "Project Charge +". Even so, we anticipate free operating cash flow (FOCF) will be negative for the next couple of years at least," it added.

Tata Motors' recent announcement to subsidiarize its domestic passenger car business and to explore mutually beneficial partnerships could be positive. However, the plans are at an early stage and are not expected to have a significant impact in fiscal 2021, S&P said.

"The stable outlook mainly reflects our view that Tata Motors will maintain adequate liquidity over the next two years. This would partly mitigate the company's weakening leverage and cash flow-based metrics," the agency said.

S&P further said while negative FOCF is a risk over the period, "we believe Tata Motors has financial flexibility as part of the Tata Group, though the benefits are more pronounced at the Indian operations than at JLR".

The Indian operations also face less cash flow pressure despite weaker earnings relative to JLR, thanks to a more manageable capex plan, it added.

ALSO READ: FIIs keep off Indian debt with record sell-off amid coronavirus outbreak

On the possibility of further downgrading ratings on Tata Motors, S&P said "a downgrade to 'B-' would largely be the result of a deterioration in Tata Motors' liquidity position".

"In our view, this would be more likely driven by lower financial flexibility and reduced fundraising ability, than a deeper operational decline. That said, a significant underperformance of earnings relative to our current estimates could contribute to this scenario," it said.

In the absence of significant developments, an upgrade in the next 12 months is less likely given the negative outlook on JLR, which has a significant influence on Tata Motors' credit profile, S&P said.

"A rating higher than that on JLR is possible if the Indian operations strengthen appreciably such that JLR has a lower influence on the consolidated financial profile. This is not our expectation in the next two years," it said.

Tata Motors falls below Rs 100-mark; hits lowest level since September 2009

Shares of Tata Motors slipped below the Rs 100-mark, for the first time since September 4, 2009, to quote at Rs 98.65 on the BSE on Wednesday. The stock skid 7 per cent in the intra-day session today.

The stock of the automobile firm has fallen 21 per cent in the past three trading days after the company lowered its FY20E EBIT (earnings before interest and tax) margin guidance for Jaguar Land Rover (JLR) by 1 per cent (from around 3 per cent prior guidance) due to a steep decline in China retail (-85 per cent Y/Y) and supply-chain disruption.

Tata Motors, in a press release on March 6, 2020, informed the exchanges about the impact of Coronavirus outbreak on JLR and the India business.

While Tata Motor’s China business of JLR was sharply down, the company has begun to see impact in other markets as well. For the India business, it expects 4QFY20 to see further impact (due to Coronavirus) on already expected weak performance due to BS-VI transition.

Thus far in the calendar year 2020, Tata Motors has underperformed the market by falling 50 per cent, as compared to a 15 per cent decline in the S&P BSE Sensex.

“This is not surprising in the context of a market-wide demand collapse in China in February due to COVID-19. The company notes that production in China seems to be gradually resuming and 80 per cent of dealer stores are now open, albeit with lower staff/muted footfall,” according to analysts at JP Morgan.

"A demand recovery in China could likely take time and downside risks still persist due to (a) the potential spread of the virus to other markets, (b) slow normalization in the supply chain, and (c) UK trade negotiations (Brexit)," the brokerage firm said.

The company, however, noted that the Chinese suppliers have resumed operations, albeit at sub-par operating levels. "The company is seeing visibility on production up to mid-March and it expects limited volume loss in FY4Q given the on-going BS-IV destocking. Delays in normalization on the supply-chain front, plus a fire at its key supplier in Pune (Varroc) could mean BS-VI restocking will be impacted in the market," it added.

Tata Motors plunges 10% on reports of CCI probe, coronavirus woes

Shares of Tata Motors tumbled 10 per cent to Rs 130.50 on the BSE on Friday on reports that the Competition Commission of India is examining allegations that the company and two finance firms of its $100 billion parent group abused their market position while selling commercial vehicles. Besides, heavy selling was seen at the counter as concerns on China-originated coronavirus becoming a pandemic soured sentiment. China is one of Tata Motors' most significant markets in terms of volume and profit.

The automobile company allegedly dictated terms around the quantity and type of vehicles its former dealer in northern India - Varanasi Auto Sales - should stock, news agency Reuters reported. The latest complaint, filed last year by a family member of the dealer, alleged Tata Motors broke rules by working in concert with Tata Motors Finance and Tata Capital Financial Services while advancing dealer credit, the report said. 

"The automaker would stop supplying vehicles to the dealer if repayment of loans advanced by the two finance firms was delayed, indicating they were colluding," the report said quoting unnamed sources.

Tata Motors, however, told Reuters it had made submissions to the CCI and would provide full support to the watchdog. It added the CCI was "conducting a preliminary enquiry to determine if there are any merits to the case".

For the quarter ended December 2019, the vehicle manufacturer reported a profit before tax was Rs 1,350 crore, as against a loss before tax of Rs 29,228 crore reported during the same period last year.

During the post-result media address, P B Balaji, chief financial officer for the Tata Motors group, cautioned that demand in China could be hit with the Coronavirus outbreak, derailing the margin targets for the ongoing financial year.

“A few things on the horizon worry us, the big one being this,” Balaji had said. Saying they expected a three per cent Ebit (earnings before interest and tax) margin for Jaguar Land Rover (JLR), he cautioned that this could be hit by the virus outbreak, which needed to be “watched closely...It’s a developing situation and people are in the midst of a Chinese New Year break till February 8”. JLR’s retail sales in China rose rose 34.6 per cent, contributing 19.4 per cent in total sales. JLR’s overall sales during the quarter contracted 2.3 per cent to 141,200 units.

At 9:48 am, the stock was trading 7.7 per cent lower at Rs 133.75 apiece. In comparison, the benchmark S&P BSE Sensex was down 1,147.6 points, or 2.89 per cent, at 38,602.62 level. A total of 3.01 crore shares have changed hands on the counter on the BSE and NSE till the time of writing of this report. So far in calendar year 2020, the stock has plummeted 22 per cent on the BSE, compared with a 3.6 per cent decline in the S&P BSE Sensex.

Tata Motors gets nod to raise Rs 500 cr through non-convertible debentures

Tata Motors on Wednesday said its board approved committee has given its approval for raising Rs 500 crore through issuance of non-convertible debentures on private placement basis.

"The Board approved Committee has today approved allotment of 5000 rated, listed, unsecured, redeemable, non-convertible debentures E28-B Series of face value Rs 10 lakh each, at par, aggregating Rs 500 crore," the company said in a regulatory filing.

It further noted that the fund raising will be "in two tranches of Rs 250 crore each, on private placement basis".

The NCDs are proposed to be listed on the Wholesale Debt Market (WDM) segment of BSE and National Stock Exchange of India, it said.

Shares of Tata Motors were trading at Rs 144.45 a piece on BSE, down 3.60 per cent from its previous close.

Companies see Budget 2020 farm, infra push helping commercial vehicle sales

The Union Budget will perk up commercial vehicle (CV) sales held up by a slowing economy and transporters saddled with surplus capacity, said industry representatives as companies reported their latest figures.

Tata Motors' sales in domestic commercial vehicle sale dropped by 15 per cent in January 2020 to 31,348 from 37,089 in January 2019. The company’s Medium and Heavy Commercial Vehicles (M&HCV) saw a 41 per cent drop to 6,914 units from 11,694 units a year ago. Total domestic CV sales dropped by 26 per cent to 279,947 units from 378,664 units, a year ago. M&HCV sales dropped by 46 per cent to 67,145 units from 12,33,41 units, a year ago.

Girish Wagh, president of Commercial Vehicles Business Unit at Tata Motors, said his company’s retail sales were better than wholesale for the seventh straight month, reducing inventory before the country adopts BSVI emission standards. Tata’s M&HCV sale in January 2020 was second highest in last seven months. Small commercial vehicles did better than other segments, resulting in a y-o-y growth of 2 per cent.

Ashok Leyland’s M&HCV domestic sales dropped by 49 per cent in January 2020, from to 6,949 from 13,663 units a year ago. M&HCV trucks sales dropped by 60 per cent, but sales of bus rose by 30 per cent in January. M&HCV trucks in the domestic market stood at 4,837 units as compared to 12,042 units, a drop of 60 per cent. Bus sales rose to 2,112 units from 1,621 units. Light commercial vehicles sales dropped by 20 per cent to 3,901 units from 4,870 units.

Total vehicles sales in domestic market dropped by 41 per cent to 10,850 units in January from 18,533 units.

Vipin Sondhi, MD &CEO, Ashok Leyland said that the Union Budget’s allocation of Rs 2.83 trillion for agriculture, irrigation and rural development will help the CV industry as it will lift up the rural economy. The Budget’s proposal to spend Rs.100 trillion on infrastructure in five years will build demand for commercial vehicle too.

Overall economic activity and job creation will increase demand for goods and consumption and Increase freight movement on trucks, he said.

Anuj Kathuria, chief operating officer at Ashok Leyland, has said that M&HCV industry would close the fiscal (2019-20) with total sales of around 2,00,000 units, a drop of nearly 46.23 per cent compared to last year.

Total industry volume in 2019-20 would be around 2,00,000 units as against 3,72,000 units, last year, a drop of nearly 46.23 per cent. M&HCV volume during 2019-20 (April to December) dropped by 36.39 per cent to 1,76,202 units as against 2,78,319 units, a year ago.

VE Commercial Vehicles Ltd (VECV) said that in the domestic CV market, Eicher branded trucks & buses have recorded sales of 4871 units in January 2020 (YTD 37762 units) as compared to 5177 units in January 2019, representing a decline of 5.9 per cent. Volvo Trucks has recorded sales of 156 units in January 2020 (YTD 937 units) as compared to 98 units in January 2019, representing a growth of 59.2 per cent.

Tata Motors posts Q3 net at Rs 1756 cr on strong JLR performance; sales dip

Tata Motors on Thursday posted a consolidated net profit of Rs 1,755.88 crore for the third quarter ended December 31, 2019.

The auto major had reported a net loss of Rs 26,960.8 crore during the October -December period of 2018-19. Total revenue from operations stood at Rs 71,676.07 crore as compared with Rs 76,915.94 crore in the year-ago period, Tata Motors said in a regulatory filing. On a standalone basis, the company posted a net loss of Rs 1,039.51 crore as against a profit of Rs 617.62 crore in the year-ago quarter.

Standalone total revenue stood at Rs 10,842.91 crore as compared with Rs 16,207.67 crore in the same period a year-ago. During the third quarter, the company's standalone wholesales, including exports, declined 24.6 per cent to 1,29,185 units.

Revenues of British arm Jaguar Land Rover increased to 6.4 billion pounds, up 2.8 per cent as compared to same period last fiscal. The brand's total retail sales fell 2.3 per cent during the period under review as against the same period of previous fiscal.ALSO READ: Tata Motors launches EV variant of SUV Nexon, price starts at Rs 13.99 lakhWhile Jaguar Land Rover has continued its turnaround, market decline and BS-VI stock reduction in domestic market has affected company's performance, Tata Motors said.

Jaguar Land Rover continued its turnaround and transformation journey with another quarter of strong delivery. China continues to improve gradually while Project Charge is well ahead of plans having already delivered 2.9 billion pounds so far, it said.

In India, the auto industry continues to be impacted by the general economic slowdown. The profitability was impacted by adverse mix where despite increasing market shares, M&HCV volumes declined, the company said.

"This coupled with proactive system stock reduction of Rs 3,800 crore resulted in loss of operating leverage," it said.

It further said, "Though the near-term market situation is fluid, we are optimistic on the medium term as we launch our exciting BS-VI range of products with our system inventory at a multi-year low. We remain focused on driving our turnaround strategy and transitioning seamlessly to BS-VI."

Shares of Tata Motors on Thursday ended 0.98 per cent lower at Rs 186.20 apiece on the BSE.

Tatas raise the EV game with attractive price on high-level localisation

Tata Motors’ strategy of adopting a very competitive pricing for the Nexon EV will prompt its rivals — Maruti Suzuki India as well as Mahindra and Mahindra (M&M) — to package their offerings in a manner that attracts buyers.

High pricing of electric vehicles (EVs) has been a key deterrent for buyers. With a price starting from Rs 13.99 lakh to Rs 15.99 lakh, the Nexon is the first EV offering in the mass sports utility vehicle (SUV) segment.

M&M is set to unveil its electric compact SUV version of the XUV300, while Maruti will be taking wraps off the electric variant of the Wagon R at the Auto Expo next month.

Earlier this month, MG Motors launched its EV vehicle, the ZS. Over the next two years, Tata Motors will introduce four more EV models, including two SUVs, a sedan and a hatchback, as it seeks to be in the leadership position.

“The combination of electric and SUVs at a competitive price bodes well for Tata Motors and it will gain from the first-mover advantage in the mass SUV segment,” said Puneet Gupta, associate director at IHS Markit. There is a big market that revolves around this pricing, he said.

Powered by the company’s Ziptron technology, the Nexon EV offers a range of 312 km on a single charge and boasts of an efficient high-voltage system, fast-charging capability and more than 30 connected features. The model goes on sale from across 60 authorised dealerships in 22 cities, starting Tuesday.

Tata Motors has been able to price the model attractively because of the high-level of localisation, said Shailesh Chandra, president, electric mobility business.

Tata Motors surges 54% in December quarter; sees sharpest gain in 10 years

Shares of Tata Motors were up nearly 3 per cent to Rs 181 on the BSE on Monday, gaining more than 50 per cent in October-December quarter. The stock of Tata Group automobiles company is set to post its sharpest quarterly gain in the past one decade.

Thus far in the fourth quarter of current calendar year 2019 (Q4CY19), shares of Tata Motors have rallied 54 per cent, as compared to 7.5 per cent rise in the S&P BSE Sensex. The stock hit a 52-week low of Rs 106 on September 4, 2019.

Tata Motors is the top gainer among BSE Auto and Nifty Auto indices - both of them have gained nearly 10 per cent each during the quarter. Earlier, in September 2009 quarter, the share price of Tata Motors had more-than-doubled.

The rally was also attributed to better-than-expected September quarter (Q2FY20) earnings, with improvement in the operational performance at Jaguar Land Rover (JLR), its Britain-based luxury vehicle arm. The infusions of fund worth Rs 6,500 crore by the promoter Tata Sons via preferential issue will help deleverage the standalone balance sheet.

"Against the backdrop of a downturn in the global automotive market, the management sees sales grow in the US and China. Despite the ongoing headwinds in China, the management continues to see green shoots of recovery in our sales there. The intensive work with retailers in the region, combined with significant process and product improvements are starting to gain traction," it had added.

With clarity over Brexit, US-China trade and the end of regulatory issues in the European Union (EU), analysts at JM Financial believe that pent-up demand and new model launches in the Battery Electric Vehicles (BEV) / Plug-in Hybrid Electric Vehicle (PHEV) space points to a relatively better market scenario than that in CY19.

“We are enthused by incremental capital commitment by Tata Sons. We believe it will help limit the company’s leverage, going forward. The Q2FY20 performance showed substantial promise but we await sustained margin improvement and further cash flow visibility at JLR before revisiting our directional call on Tata Motors,” analysts at ICICI Securities said in result update. The brokerage firm has ‘hold’ rating on the stock.

Tata Motors, Prakriti E-Mobility to deploy first batch of Tigor EVs in Jan

Tata Motors on Friday said it has partnered app-based taxi service provider Prakriti E-Mobility to deploy 500 Tigor electric vehicles (EVs) in the national capital.

The first batch of over 160 Tigor EVs is expected to hit the road by January 2020, the company said in a statement.

Commenting on the partnership, Tata Motors President - Electric Mobility Business & Corporate Strategy said Tigor EVs would be a valuable addition to Prakriti E-Mobility's offerings as it aptly addresses the requirements of longer range applications and also provides higher revenue earning potential for commercial customers.

"The induction of Tigor EVs will not only help the company achieve their business goals but also accomplish their objective of offering eco-friendly mobility solutions," he added.

Prakriti E-Mobility co-founder & CEO Nimish Trivedi said the company strongly believes in the inherent benefits of zero emission, and lower operating costs of EVs will be the ultimate game changer for commuting in the city.

"We plan to deploy 500 Tigor EVs in New Delhi and bring EV solutions closer to our customers," he added.

Tata Motors near seven-month high; stock surges 16% in six days

Shares of Tata Motors continued their their northward journey, trading close to seven-month high of Rs 185, up 2 per cent on Wednesday, on the back of a slew of positive news.

The commercial vehicles major's stock has rallied 16 per cent in the past six trading days, as compared to 3 per cent rise in the benchmark S&P BSE Sensex. It was trading at its highest level since May 28, 2019. The stock has now surged 73 per cent from its 52-week low of Rs 106, touched on September 4, 2019 on the BSE.

Tata Motors’ British arm Jaguar Land Rover (JLR) reported a consistent improvement in China sales for the fifth consecutive month in November.

The rally was also attributed to victory of British Prime Minister Boris Johnson in the UK election, which renewed hopes that the Brexit could happen by January 2020. A possible deal will end the uncertainty as Tata Motors derive a big chunk of their business from the UK.

"Against the backdrop of a downturn in the global automotive market, we were pleased to see our sales grow in the US and China. Despite the ongoing headwinds in China, we continue to see green shoots of recovery in our sales there,” said Felix Brautigam, Jaguar Land Rover Chief Commercial Officer.

Earlier this month, Tata Motors had raised around Rs 3,000 crore by allotting 202 million equity shares to promoter Tata Sons through preferential issue. The company also allotted 231 million convertible warrants to Tata Sons. Post allotment, Tata Sons stake in automobile company increased to 43.08 per cent from 34.69 per cent, Tata Motors said in an exchange filing.

“JLR has been executing a credible turnaround plan “Project Charge” which entails rationalization of investment spending, WC improvement and aggressive cost reductions. However, negative FCF concerns at JLR still persist (entails further capex rationalization) and sustainability of margin improvement needs to be monitored amid macro/ industry headwinds (Brexit/ CO2 emission norms),” analysts at JP Morgan said in November report.

For a constructive view on the stock, the brokerage firm believes it is critical to get visibility on FCF improvement, sustainable margin delivery, and a China turnaround.

At 10:40 am, Tata Motors was trading 1 per cent higher at Rs 183 on the BSE, against 0.14 per cent rise in the S&P BSE Sensex. A combined 22 million equity shares changed hands on the counter in first one-and-half hour of trading on the NSE and BSE.

Tata Motors surges 6%, hits over 6-month high; stock up 14% in two days

Shares of Tata Motors surged 6 per cent to Rs 184, an over six-month high level, in intra-day trade on Friday on the back of heavy volumes. The automobile major's stock has gained 14 per cent in the past two trading days on the BSE. It was trading at its highest level since May 28, 2019.

At 10:56 am, Tata Motors had erased its early morning gain and was trading 4 per cent higher at Rs 180 on the BSE. In comparison, the S&P BSE Sensex was up 0.83 per cent at 40,916 points.

The trading volumes on the Tata Motors counter jumped 1.25 times with a combined 52 million equity shares changing hands on the counter, against a two-week average of around 40 million shares on the NSE and BSE.

According to a PTI report, British Prime Minister Boris Johnson looks set to return to 10 Downing Street with a comfortable majority and a victory for his 'Get Brexit Done' message in the General Election based on forecasts as early results poured in on Friday. 

A possible deal will end the uncertainty as Tata Motors derive a big chunk of their business from the UK. Tata Motors, which owns the UK-based Jaguar Land Rover (JLR) brands of luxury cars.

“Over the last three years, JLR has suffered from an adverse product/market mix and higher capex, resulting in negative FCFF over FY18-20. JLR has been focused on cutting capex/cost, benefits of which have started to reflect now. Finally, the mix is normalizing with a recovery in LR and China. On the other hand, India business appears to have bottomed out in 2QFY20, although a full-blown recovery may be a few quarters away,” analysts at Motilal Oswal Securiteis said in company update. The brokerage firm maintains ‘buy’ rating on the stock with target price of Rs 195 per share.

Tata Motors global sales down 15% in Nov; Jaguar-Land Rover posts 2.4% fall

Tata Motors on Tuesday reported a 15 per cent decline in group's global wholesales at 89,671 units in November.

The group had sold 1,04,964 units in the same month last year.

Global wholesales of all passenger vehicles in November 2019 were at 58,641 units as against 66,429 units in the same month last year, down 11.72 per cent, the company said in a statement.

Jaguar Land Rover registered global wholesales of 48,105 units in November as against 49,312 units in the year-ago month, a decline of 2.44 per cent.

Jaguar wholesales for the month stood at 10,801 vehicles, while Land Rover wholesales were at 37,304 vehicles, the company added.

It further said global wholesales of all Tata Motors commercial vehicles and Tata Daewoo range stood at 31,030 units in last month, 19 per cent lower than 38,535 in November 2018.

Jaguar Land Rover retail sales down 3.4% in November: Tata Motors

Tata Motors-owned Jaguar Land Rover (JLR) on Monday reported 3.4 per cent decline in total retail sales at 46,542 units in November as compared to the year-ago period.

The sales of Jaguar brand were at 11,464 units during the month, down 23.1 per cent from November 2018, Tata Motors said in a BSE filing.

Land Rover sales stood at 35,078 units, up 5.5 per cent per cent from the same month last year, it added.

"Against the backdrop of a downturn in the global automotive market, we were pleased to see our sales grow in the US and China. Despite the ongoing headwinds in China, we continue to see green shoots of recovery in our sales there. The intensive work with our retailers in the region, combined with significant process and product improvements are starting to gain traction," JLR Chief Commercial Officer Felix Brautigam said.

Tata Motors' passenger vehicles sales and marketing head S N Burman resigns

S N Burman, vice-president (sales, marketing and service-passenger vehicles) at Tata Motors, has resigned from his position, according to a source. His resignation comes amid floundering sales at the firm.

A company spokesperson has confirmed the news. “Barman has decided to pursue career opportunities outside Tata Motors.” Barman joined Tata Motors from Maruti Suzuki in 2015.

As an interim structure, it has been decided that head of sales (north and east) and head of sales (south and west) will be reporting to Mayank Pareek, president, passenger vehicle business unit, the spokesperson added.

Tata Motors to hike passenger vehicle prices from Jan to offset BSVI impact

Tata Motors on Wednesday said it will increase prices of its passenger vehicles from January, primarily in order to offset impact of upgrading its portfolio to conform to BSVI emission norms.

The company currently sells products ranging from hatchback Tiago to SUV Harrier, priced between Rs 4.39 lakh and Rs 16.85 lakh (ex-showroom Delhi).

"With BSVI products coming in, prices will increase from January," Tata Motors President (Passenger Vehicles Business Unit) Mayank Pareek told PTI in an interview here.

He declined to quantify the increase in prices but said the hike next month would be on a higher side as compared to earlier price revisions taken by the company.

"We are working on the calculations...normally if any change happens the prices go up by Rs 10,000-15,000. Now there are two things happening, one is BSVI and there is also pressure from rise in commodity prices," Pareek said.

BSVI emission norms in India are slated to kick in from April 1, 2020.

On Tuesday, Maruti Suzuki India announced to increase prices of its models from January to offset rising input costs.

Other automakers like Toyota, Mahindra & Mahindra and Mercedes-Benz are also contemplating a similar move.

Hyundai Motor India and Honda Cars India, however, said they will not increase vehicle prices in January, but their products will see price hike when BSVI compliant models are introduced in the market.

New twist in Singur tale, panel to soon decide on arbitration in dispute

A new chapter is set to unfold in the ten-year-old Tata Motors-Singur saga.

A three-member arbitral panel will deliver its decision on whether or not to start arbitration proceedings in the dispute surrounding the acquisition of land in Singur shortly.

At the heart of the dispute is Tata Motors' claim for compensation of the losses incurred in Singur - the location of the Nano project - from which it pulled out in 2008, following a Mamata Banerjee-led agitation by locals against the acquisition of land.

The statement of claims filed by the company has put the figure at nearly Rs 934 crore with interest.

A Tata Motors spokesperson said, "We cannot comment on this as the matter is sub judice."

Tata Motors started seeking compensation for its losses after a Supreme Court verdict that set aside the acquisition of 997 acres by the Left Front-led West Bengal government in 2006 to help it set up the Nano plant in Singur. That was August 31, 2016.

The apex court directed the state government to take possession of the land and re-distribute it to the owners.

Thereafter, Tata Motors wrote to WBIDC for reimbursement of its losses. WBIDC rejected the claim on grounds that the arbitration clause had perished with the lease deed, as the Supreme Court had struck down the land acquisition for the project.

Tata Motors had invested nearly Rs 1,800 crore in establishing the plant which was almost ready to roll out cars. However, the project relocated to Sanand in Gujarat and what the company is looking for now, is to recover is the sunk cost and interest.

After WBIDC rejected its claim, Tata Motors invoked the arbitration clause under the Arbitration and Conciliation Act, 1996. Later an application was moved in Calcutta High Court.

Between 2017 and March 2019, issues of maintainability of the arbitration clause and selection of nominees dominated the high court proceedings.

Finally, on March 28, 2019, the Calcutta High Court accepted nominations for respective arbitrators and said that the arbitrators would nominate the third arbitrator in line with the terms of the agreement.

Subsequently, Tata Motors filed a statement of claims amounting to nearly Rs 934 and interest; WBIDC filed counter claims of Rs 267 crore along with pendente lite interest on account of investment made in the land.

WBIDC has also challenged the arbitration clause before the panel under Section 16 of the Arbitration Act, which confers powers on the Arbitral Tribunal to rule on its own jurisdiction.

It is praying for declaration that the Arbitral Tribunal doesn't have the power to adjudicate claims of Tata Motors under the lease deed of 2007. The next date of hearing is on December 2, when an order on Section 16 is expected.

Clauses relating to compensation and arbitration do exist, however, in the termination clauses of the lease deed.

The lease agreement between Tata Motors and West Bengal Industrial Development Corporation (WBIDC) for the Singur land had an arbitration clause that could be invoked if a court or any other authority declared the land acquisition proceedings had not been in accordance with the provisions of the law.

The lessee would then be entitled to compensation for losses incurred, equal to the actual capital expenditure made, mentioned the agreement.

On October 3, 2008, when Tata Motors pulled the plug on manufacturing the Nano out of Bengal, the equipment had already been installed and trial production had begun; 15-20 cars were ready for roll-out.

Adjacent to the main site, 13 vendors had constructed plant buildings, 17 others were at various stages of construction and balance 24 vendors were at various stages of obtaining approvals before commencing construction.

Much water has flown since. From a pullout to a change of government to redistributing the land to land losers following the Supreme Court order, Singur has come a full circle.

The Tata group, however, has continued to expand in West Bengal and is one of the largest private sector investors in the state.

SINGUR TIMELINE

August 2016: Supreme Court sets aside land acquisition for Tata Motors project in Singur

Feb-March 2017: Tata Motors claims compensation from WBIDC; WBIDC rejects claim

April 2017: Tata Motors invokes arbitration clause and nominates A K Ganguly; WBIDC does not appoint nominee; Tata Motors files application under Section 11 of Arbitration and Conciliation Act, 1996 before Calcutta High Court

March 2019: High Court disposes of the matter after Tata Motors agrees to change its nominee from A K Ganguly to Aloke Chakraborti; WBIDC also agrees to nominate Jayanta Kumar Biswas as its nominee

May 2019: Arbitral Tribunal set up; V S Sirpurkar named presiding arbitrator

June 2019: Tata Motors files statement of claims of around Rs 934 crore + interim interest

August 2019 - WBIDC files application under section 16 before Arbitral Tribunal

September 2019: WBIDC files counter claim seeking compensation of Rs 267 crore along with pendente lite interest

Tata Motors hits 5-month high; zooms 42% in four days on strong Q2 results

Shares of Tata Motors hit a five-month high of Rs 180, up 4 per cent on the BSE on Thursday, zooming 42 per cent in the past four days, after it delivered a better-than-expected September quarter (Q2FY20) earnings show, with improvement in the operational performance at Jaguar Land Rover (JLR), its Britain-based luxury vehicle arm. The stock of the Tata Group's company was trading at its highest level since May 29, 2019.

In Q2FY20, Tata Motors’s consolidated net loss narrowed to Rs 217 crore, from Rs 1,049 crore reported in the year-ago period, while net revenue dropped nine per cent to Rs 65,432 crore. Driven by an improvement in JLR’s operational metrics, earnings before interest, tax, depreciation and amortisation (Ebitda) in the quarter rose 250 basis points (bps) to 12.4 per cent, the highest in 16 quarters.

The management hopes that measures announced by the government, as well as their commitments to significant front-end infrastructure investments, introduction of scrappage policy, and ensuring adequate liquidity to micro, small & medium enterprises (MSMEs) will improve the situation in the coming months.

The board approved preferential allotment / warrants to Tata Sons aggregating Rs 6,500 crore at Rs 150/share and implying dilution of 13 per cent. This will help deleverage the standalone balance sheet and is a positive signal for the stock sentiment.

“The progress on cost savings program and improvement in China is driving the much-needed margin improvement at JLR. India business, however, registered a big loss mainly due to sharp CV slowdown, though we think worst is over with large channel clean-up done”, analysts at JP Morgan said.

Going ahead, analysts at JM Financial Institutional Securities believe that in H2FY20, JLR can show an improvement in quarterly sales, while China JV sales will continue to decline albeit at a slower pace.

"After witnessing a strong performance by JLR during Q2FY20, efficacy of ‘Project Charge’ is not under question," it said. The brokerage firm maintains ‘buy’ rating on Tata Motors with 12-month target price of Rs 230 per share.

At 01:08 pm, the stock was trading 3.7 per cent higher at Rs 178 on the BSE, as compared to a 0.59 per cent rise in the S&P BSE Sensex. A combined 57 million shares have changed hands on the counter on the NSE and BSE till the time of writing of this report.

Tata Motors launches Tigor EV with extended range at Rs 944,000

Tata Motors on Wednesday launched Tigor EV with an extended range to cater to both fleet and personal segment customers with price starting at Rs 9.44 lakh (ex-showroom Delhi after deducting government subsidies).

The vehicle, which now comes with 213 km of range, qualifies for incentives under the FAME II scheme for commercial usage.

The model, which comes in three trims, would be available across 30 cities.

"Tigor EV Extended Range model aptly addresses the requirements of longer range applications and also provides higher revenue earning potential for our commercial customers," Tata Motors Head-Sales Electric Vehicle Business Ashesh Dhar said in a statement.

The new version builds on the success of the earlier Tigor EV, which is already deployed with several fleets and government departments, he added.

"This launch reinforces our commitment towards sustainable mobility solutions in the country," Dhar said.

The earlier version of Tigor EV used to come with a range of 142 km.