Car company Tata Motors has suffered a loss of Rs 329 crore in the first quarter of the financial year 2009-10. In the corresponding period last year, the company earned a profit of Rs 720 crore. However, the two periods cannot be compared fairly because during Q1 2008-2009, British brands Jaguar and Land Rover (JLR) were not part of Tata Motors.

The chief reason for the company’s dismal performance this year is that JLR, acquired by Tata Motors in June 2008, is operating at extremely low volumes. The brands’ sales volumes have seen a fall of 52 per cent in the given quarter. Mr Ravi Kant, the Vice Chairman of Tata Motors, said that he had no doubt that JLR would be profitable after the markets revive. The beleaguered British companies will be introducing new models in the second half of 2009, which are expected to increase sales.

Courtesy: www.driveinside.com