Tata Motors has reported a 5% decline in the global sales, including that of Jaguar Land Rover, which fell 21.6% in July. Sales of the luxury car — Jaguar Land Rover — dropped 21.6% in global retail sales at 36,144 units in July. However, the global sale of its commercial vehicles and Tata Daewoo in July were 40,443 units, 29% higher than from a year ago.
The drop in monthly sales of the company follows two major rating downgrades by Moody’s and S&P. Moody’s downgraded the corporate family rating on Tata Motors because of “weakening credit metrics” at Jaguar Land Rover to Ba2 from Ba1.
This was soon followed by a rating downgrade by S&P. The rating agency downgraded Tata Motors’ rating to BB from BB+ due to operational issues plaguing its cash-cow JLR and weakening volumes. However, both agencies retained stable outlook for the company.
S&P said that sales of JLR could be falling due to the Volkswagen dieselgate emissions scandal, which made Europe avert to diesel cars. Diesel cars accounted for over 30% of JLR’s total volume in the financial year 2017-18.
The global sales for all passenger vehicles were 52,196 units in July, down 22% year-on-year, while global sales of JLR were 35,007 units, Jaguar wholesales were 12,427 units, while Land Rover sales were at 22,580 vehicles, the company reported.
Source: Financial Express