November 22, 2008

TATA Motors gives a tough outlook

Mr Ratan Tata chairman of TATA Motors said that higher rates will hit performance and warned that it is driving into a rough patch.

He added that "There will be an enormous and unprecedented increase in material costs in steel, tyres, and the like and there will be the impact of tighter money supply with higher interest rates."

Mr Tata said that the other major challenges would be to manage the completion of the Singur plant, introduction of Nano and absorbing the cost of acquiring Jaguar and Land Rover.

He pointed out that while TATA Motors registered significant growth last financial year, it lost market share and was unable to exploit its full market potential due to inadequate deliveries of power trains and components from major suppliers.