Tata Motors crosses 1-million sales mark in FY18

MUMBAI: Tata Motors, which acquired Jaguar Land Rover (JLR) a decade ago, achieved sales of more than 1-million light vehicles for the first time in the year ended March 2018.

India’s largest automobile company by revenue registered a growth of 13% in FY18, the fastest pace in the past five years.

While JLR continues to build its reputation in evolved markets overseas and competes against the German trio of Mercedes, BMW and Audi, Tata Motors made a strong comeback in the domestic market, with over 20% growth last year. The company overtook Honda Cars India in the No. 4 slot and is now targeting the No. 3 position.

JLR contributed the largest share with sales of 633,000 units, including those from its Chinese joint venture. A bounce-back in the Indian market for both passenger vehicles and small commercial vehicles, including pickup trucks, helped the group’s global sales.

Tata Motors becomes only the second Indian car maker, after Maruti Suzuki, to cross the 1million unit sales milestone. Maruti Suzuki is the Indian subsidiary of Japanese car maker Suzuki.

“Crossing 1million is an important achievement as it highlights our ability to serve the needs of more than a million customers in various parts of the world,” a Tata Motors Group spokesperson said in an email.

JLR, which helped global sales for Tata Motors cross the milestone, has managed to grab 10% of the global premium vehicle market and is on its own headed to the 1million unit sales landmark in the next three to four years. The Tata Motors stock has risen over 300% following the acquisition of JLR in 2008, helping to add Rs 80,000 crore to shareholder wealth.

According to Gaurav Vangaal, a senior analyst at IHS Markit, crossing the 1million mark is the first major step towards becoming a truly global player. Having entered the automobile business only a couple of decades ago, it is a significant achievement for Tata Motors, he said.

“Brand affinity or global awareness is not a challenge – continuing to invest for the future with profitability under pressure is an issue.economictimes

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