More Stories

Informist, Friday, Aug. 22, 2025

 

By Anand JC and Pallavi Singhal

 

NEW DELHI - Demand for passenger vehicles, which is already subdued, could fall in the near term after Prime Minister Narendra Modi announced that the government would restructure the goods and services tax and cut rates, a senior official of Tata Motors Ltd. told Informist Friday. The executive also said the company has secured its supply of rare earth magnets for the next six months.

 

"Only thing is (that) whatever is the decision, it should happen soon," the executive told Informist on condition of anonymity. Uncertainty is making customers hold back their purchases, the Tata Motors official said. "Retail sales coming down is a concern. If sales do not happen it will create supply chain issues," the official added.

 

On the shortage of rare earth magnets, the executive said Tata Motors does not expect production of its electric vehicles to be hit in the near term. China, which has a near-monpoly on the supply of rare earth magnets, has imposed curbs on their export. Automobile companies, especially those manufacturing electric vehicles, have had to change their production plans, given the importance of rare earth magnets in electric motors and other components.

 

Several Indian automobile companies have made representations to the government about China not allowing access to rare earth magnets. Indian officials recently met their Chinese counterparts and reportedly secured an agreement from them that China would allow the resumption of the export of rate earth magnets. However, the Tata Motors official said automobile companies are yet to hear directly from the government. 

 

For the June quarter, Tata Motors reported a consolidated net profit of INR 39.24 billion, down over 30% on year. The company's revenue was down 2.5% at INR 1.04 trillion. Friday, shares of Tata Motors closed 0.7% lower at INR 680.95 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.