UK effect: Tata Motors to loss Rs 300cr

The deal of acquiring UK's Jaguar and Land Rover has turned unfruitful to Tata Motors. The bad results are non-stoping. This also caused Tata to loss around Rs 300 crore for FY-09. This loss may break the records of 8 years. Industry analyst predicts that weak performance of its UK subsidiary and Singapore subsidiary made the Tata Motors on back seat. In fiscal year 2000-01, Tata Motors had reported a standalone loss of Rs 500 crore mainly due to weak sales of commercial vehicles, its mainstay. Tata Motors refused to comment for this story saying it doesn’t give guidance on financial results . The company is scheduled to announce its consolidated results on June 26.  Tata Motors’ UK unit’s loss could be about Rs 900 crore, interest costs from TML Holdings, the Singapore holding company, totalled Rs 400 crore in the previous fiscal year, while losses from Tata Motors Financial Services could be Rs 100 crore. Sales of Jaguar and Land Rover, the luxury brands, hit a rut after tight liquidity post the Lehman crisis affected car sales in Europe and the US. After seeing a 16% decline in calendar year 2008, sales of Jaguar Land Rover were down 17% in the January-March period in key US and European markets, says a recent Merrill Lynch report.