Tata Motors' consolidated revenues in Q3FY23 have increased by 22.5% YoY to INR 88,489 crore, while the same for first nine months of the current fiscal saw 20% growth to INR 240,035 crore from what it achieved in the same time last year.
The JLR business helped the company to garner revenues of €6 billion in Q3FY23, up by 28% YoY while being more by 15% over what it achieved in Q2FY23.
A press release from the vehicle maker noted that 85,000 JLR cars were delivered to retail clients in Q3FY23 while taking 95,000 net new orders, with the total number of orders increasing to a new record of 215,000 units.
Adrian Mardell, Jaguar Land Rover’s Interim Chief Executive Officer, said, “JLR has returned to profit as chip shortages eased in the quarter and production and wholesales increased.”
The company continues to see strong demand for its vehicles. The sales in China during the quarter were impacted by lockdowns leading to dealer closures followed by high staff absence rates as COVID-19 restrictions were relaxed. The situation is expected to recover in the fourth quarter with our dealers open and staff absence closer to normal levels in January, the company said.
Tata Motors' PV business managed to grow its revenue by 37% YoY to INR 11,700 crore. In Q3FY23, the domestic wholesales for the carmaker stood at 131,300 units, up by 33% YoY, while domestic retails were up by 27% YoY to 138,900 units, making it the highest quarterly retails for the company; it crossed the 50,000 units of monthly retail for the first time.
Interestingly, during the quarter, the EV volumes were also highest at 12,600 units, 116% more than what it achieved last year, with YTD FY23 EV volumes standing at 32,400 units.
The press release noted that the EV penetration was 8% while the CNG penetration was 9% in YTD FY23.
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles & Tata Passenger Electric Mobility, noted that Q3FY23 was one of the best quarters for the PV industry with strong retail from new launches, robust festive demand, and adequate supply of vehicles.
“Going forward, we remain vigilant about the evolving demand and supply situation and will stay nimble to take necessary actions swiftly whilst focusing on improving profitability further,” he said.
Tata Motors generated INR 16,900 crore in its CV business unit, up by 22% compared to Q3FY22. Although the company’s Q3 domestic wholesales stood at 90,800 units, which is equal to what it achived in the same period last year, and domestic retails grew by 5% YoY to 97,700 units, the company’s global wholesales were down by 6% YoY to 97,100 units, primarily because of weaker international business volumes.
Girish Wagh, Executive Director, Tata Motors, noted that in Q3FY23 the CV industry witnessed a steady overall demand. “Our focus on creating ‘Demand Pull’ from customers and sustained emphasis on retail in Q3FY23 resulted in retail sales surpassing wholesale by 6.3%, thereby enabling reduction in inventory as we transition towards BS6 phase-2 norms,” he added.
Wagh continued that going forward, the company will maintain its agility and keep a close watch on the evolving geopolitical, inflation and interest rate risks on supply and demand.
“We will also continue to drive the business with strong customer connect, product and service innovations to improve customer affinity for our brands, step-up registration market shares sustainably, and improve realisations and profitability,” he added.
Despite positive revenue growth in all the segments, the company remains cautiously optimistic about the demand situation despite global uncertainties. It hopes to remain vigilant on demand, and its continued focus on profitable growth, improving semiconductor supplies, and stable commodity prices will aid revenue growth, margin improvement and positive cash delivery in Q4 FY23, the company noted.