Jaguar Land Rover announces $A6.2 billion loss

JLR booked a £3.4bn loss after a £3.1bn accounting charge

Daimler AG and BMW AG reduced profit forecasts a year ago amid pressures from the US-China trade war that's hit auto demand, while Hyundai Motor Co. said last month its letting workers go as it reviews production plans in the worlds biggest market. We continue to work closely with Chinese retailers to respond to current market conditions with a "pull" based approach to vehicle sales.

Tata Motors has reported its biggest net loss of ₹26,993 crore for the December quarter, impacted by exceptional item of asset impairment in JLR of Rs 27,838 crore. The write-off has been attributed to slowing sales in China, technology disruptions linked to a shift towards eco-friendly hybrid and electric vehicles, and also the rising cost of debt.

Uncertainty over China and with the possibility of a hard Brexit looming large, Tata Motors on February 7 said it is revising its pre-tax margin guidance to 3-6 percent in FY20 from 4-7 percent announced six months back.

The loss includes a one-off £3.1 billion "exceptional charge", resulting from the firm deciding to adjust the "carrying value" of its capitalised investments.

Revenue also increased by 1.5 per cent to Rs 16,208 crore, it added.

For the quarter, Jaguar-Land Rover (JLR) reported a negative EBIT of 2.6 percent, which was 520 basis point (100 bps= 1 percentage point) lower than the same period previous year. "With these interventions, we are building Tata Motors to deliver strong results in the medium term".

"We are now taking clear and decisive actions in JLR to step up its competitiveness, reduce costs and improve cash flows and make the business fit for the future", chief financial officer PB Balaji told reporters.

The company's sales in Europe were up slightly, despite an eight per cent drop in the overall market. "It reduces growth in depreciation and amortisation by 300 million euros per annum", Tata Motors said in a release.

Speth said: "This is a hard time for the industry but we remain focused on ensuring sustainable and profitable growth and making targeted investments that will secure our business in the future".

JLR's China retail sales nearly halved in the quarter as demand for cars from the Asian economic powerhouse shrank for the first time since the 1990s.

"Fiscal year 2019 so far has been a challenging period for the industry".

Shares of Tata Motors settled at Rs 182.90 apiece, up 2.64 percent on the BSE.

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