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Informist, Thursday, May 14, 2026

 

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--Tata Motors PV: See war impacting demand in West Asia during Apr-Jun 
--CONTEXT: Comments by Tata Motors PV mgmt in post-earnings analyst call 
--Tata Motors PV: Even without W Asia war, commodity prices were on the rise 
--Tata Motors PV: Demand in China market stabilising for JLR 
--Tata Motors PV:To prioritise JLR FY27 revenue growth via multiple launches 
--Tata Motors PV: Demand was sustained during Apr-May for industry 
--Tata Motors PV: Demand for Sierra remains strong, supply a challenge 
--Tata Motors PV: Demand for EVs in India increased since W Asia war began 
--Tata Motors PV: Supply issues to be a bigger challenge in FY27 than demand 

 

By Gopika Balasubramanium and Gunjan Rajput

 

MUMBAI – Demand for electric cars has increased in India ever since the war in West Asia began, Tata Motors Passenger Vehicles Ltd.'s top executives told analysts in a conference call after the company released its March-quarter results. The executives said they are optimistic this demand will be sustained in the future. Bookings for the company's electric cars have risen 25-30% since the end of February and the company has started action to increase its production capacity by 10% in May and ramp it up further beyond that. The rise in bookings was also led by new launches, Tata Motors PV said.

 

The company sees the trajectory of costs for vehicles with internal combustion engines being inflationary in a long-term perspective because of impending emission regulations and the costs of meet them, whereas for electric vehicles the trend is likely to be deflationary. However, demand for the company's Sierra model remains robust since it was launched in November, the management said. "For us ...the challenge has been on the supply side," a top executive said.

 

The company said it is also facing challenges on the casting side for production of Sierra as the vehicle uses a new engine. "But immediately, the milestone for us would be across 10,000," the executive said. "...we have plans to further increase the production of Sierra in the coming months. And next quarter, we should also be launching the Sierra EV so that will further require additional capacity."

 

The management also said demand was sustained in both April and May in the passenger vehicles industry. The Punch-maker said it launched new cars towards the end of the financial year 2025-26 (Apr-Mar) and will benefit from the same in FY27. The company said its main concern for FY27 is supply-side issues rather than demand and is actively taking steps to ensure the production capacity increases throughout the year. "One major focus area for us will be to ramp up production for new launches and enhance capacities to serve the demand levels that we are seeing," Tata Motors PV said.

 

One of the pain points that the company stressed on during the call was the rise in commodity prices because of the West Asia war. It said metal prices had been higher even before the crisis began. The company said it saw commodity prices increase by about 5% over the last 9-12 months but has not been able to pass on the full impact to customers. The company said it undertook intensive cost reduction efforts, but it is also looking to increase prices in the coming months. In April, it raised the prices of its cars by 0.5%.

 

Jaguar Land Rover Automotive plc's Chief Financial Officer Richard Molyneux said the war has had an impact on demand in West Asia which represents 6% of its total sales. He sees this having implications for the subsidiary's performance in the June quarter. "We do expect this demand impact to be temporary," Molyneux said. On demand from other international markets that JLR caters to, the UK and Europe, in Molyneux's view, are "doing okay". As for China, he said demand has stabilised after a challenging year.

 

JLR's priority is to grow its top line during FY27 through multiple launches and reset the breakeven volume, the chief financial officer said. He, however, refrained from giving guidance during the call as he is scheduled to do so on Jun. 17 which is the company's Investor Day.

 

Tata Motors Passenger Vehicles reported a consolidated net profit of INR 57.83 billion for the quarter ended March against a loss of INR 34.86 billion for the trailing quarter and a net profit of INR 84.70 billion for the year-ago quarter. The Sierra maker's consolidated top line rose to INR 1.05 trillion, up 7% on year and 50% on quarter. The company released its March quarter financials after market hours Thursday. Its shares closed at INR 338.75 on the National Stock Exchange, up about 1% from Wednesday.  End

 

Edited by Rajeev Pai

 

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