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Tata Motors May Affront Loss

By Motortrend India Staff   |   25 June,2009

Tata Motors, after a hiatus of eight years is likely to report a consolidated business loss. The business loss can be attributed to the poor performance by its UK subsidiary which owns iconic British brands like the Land Rover.

Analysts and broking houses have stated that the consolidated business loss of Tata Motors in the region was to the tune of Rs 300 crore. This loss has been incurred by weak sales by the UK unit of Tata Motors and high interest costs from a Singapore subsidiary. The last time Tata Motors reported a business loss of Rs 500 crore was in fiscal year 2000-01 which was a result of poor sales of its mainstay, the commercial vehicles.

Tata Motors is tight-lipped on its financial results. The company is scheduled to announce its consolidated results on June 26. It is estimated that the losses in UK subsidiary of Tata Motors could mount up to 900 crore. TML Holdings, the Singapore holding company also a subsidiary of Tata Motors had drilled a hole in Tata Motors pockets to the tune of Rs 400 crore in the previous fiscal and losses from Tata Motors Financial Services could be Rs 100 crore.

True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities around its manufacturing locations.

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