Talk of Tata Motors Ltd and what comes to mind is its only cash cow, Jaguar Land Rover Ltd (JLR), the UK subsidiary that rolls out luxury cars for global markets.
Unfortunately and perhaps coincidentally, since JLR’s acquisition, the standalone entity that was the clear supremo in the commercial vehicle (CV) market in India has run into rough weather. The behemoth’s market share has been steadily going downhill across segments from the fiscal year 2010 (FY10) to FY17. If in medium and heavy CVs, it fell from 63.3% to 49.2%, in light CVs where it had a clear head start against competitors, the share contracted from 58.5% to 38.1%. Even in passenger vehicles, its share has slipped from 14.6% to 5.7%.
This becomes hard to digest especially after its humongous $2.3 billion bet on acquiring JLR, in spite of apprehensive investors, helped spew enough cash to keep Tata Motors’ consolidated profit and loss accounts glitzy.
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