Natarajan Chandrasekaran, Chairman, Tata Motors has commented at the company’s 74th annual general meeting that his company seeks partnerships for Jaguar Land Rover
It has come to light that Tata Motors, the homegrown carmaker who owns Jaguar Land Rover (JLR), is looking for partnerships for its British subsidiary. The need for partnerships has been warranted by the burgeoning losses that the iconic British car brand has been posting.
This revelation comes from Natarajan Chandrasekaran, Chairman, Tata Motors, who spoke on this topic at the company’s 74th annual general meeting held recently. As per the latest financial performance figures posted by Jaguar Land Rover, the carmaker posted an 11.6 per cent (YoY basis) decline in global sales in the first quarter of the current fiscal.
Jaguar Land Rover even reported a pre-tax loss of 395 million British pounds, which is a worryingly high figure than the 264 million British pound loss the company suffered in the same period last year.
Also, the company’s quarterly revenues declined by 2.8 per cent to 5.07 billion British pounds in the same time period. Going by these figures, it’s definitely a worrying time for Tata Motors. What makes the situation even grimmer is that chances of sales revival look bleak at the moment.
Speaking on the company’s plan to seek partners, Chandrasekaran commented,”The only way to handle the ongoing crisis and the continuing need for large CAPEX (capital expenditure) is additional investment through partnerships because we want to spread the investment, which cannot be shut either.”
There is even some uncertainty arising out of the issue of Brexit, which can affect JLR adversely by reducing its part-sourcing capabilities. Explaining this, Chandrashekaran said, “The real concern is if Brexit were to happen with or without a deal, what will be the impact on our supply chain. We import millions of components from other parts of the world, particularly Europe.“