Tata Motors Ltd. on Friday posted a 67.2% surge in profit for the December quarter, as the easing of coronavirus restrictions and the festive season helped the carmaker clock in better sales. Carmakers are seeing a higher demand for cars as buyers turn to personal mobility in the aftermath of the COVID-19 pandemic.
“Due to a strong festive season and a clear preference for personal mobility, the PV business posted its highest sales in last 33 quarters,” Tata Motors CEO and MD Guenter Butschek said. Consolidated net profit came in at ₹29.06 billion for the third quarter, compared with a profit of ₹17.38 billion a year earlier.
The luxury carmaker, however, reported a loss of ₹3.14 billion in the previous quarter as the pandemic dented business in several of its key markets. Retail sales at luxury car unit JLR — which rakes in most of the firm’s revenue — were up 13.1% from a quarter ago, but still 9% lower than pre-pandemic levels.
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While the festive season in India helped lift sales during the December quarter, auto companies now also face a global shortage of microprocessor chips and shipping containers.
Total revenue from operations rose 5.5% to ₹756.54 billion.