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Tata Motors profit dives 16%, lags forecast

India’s top vehicle maker Tata Motors, which controls Jaguar Land Rover, announced Monday consolidated quarterly profit slumped 16 percent from a year earlier, hit by higher costs.

The auto giant reported a consolidated net profit of 18.77 billion rupees ($373.24 million) in the three months to the end of September, down from 22.23 billion rupees a year earlier.

Analysts had expected the company to post a second-quarter profit of around 20 billion rupees.

Sales for the July-September period jumped 26 percent to 359.38 billion rupees, said the company, which owns British luxury car brands Jaguar and Land Rover.

Tata Motors, part of the salt-to-steel Tata conglomerate, which manufactures utility vehicles and the ultra-low-cost Nano car, has been hit by higher raw material costs, a slowing domestic sales market and foreign currency losses.

The company reported a foreign currency loss of 4.4 billion rupees during the quarter compared to a gain of 1.3 billion rupees in the same period a year earlier.

New car sales in India fell 24 percent in October to 138,521 units — their sharpest decline in more than a decade — as high interest rates and rising fuel prices hurt demand.

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