to tackle a surge in coronavirus cases also represent an emerging risk to the carmaker, P B told reporters after Tata Motors reported a fourth quarter loss.
“The two big worries are inflation and
Tata Motors will nevertheless meet its profit and cashflow targets for the year, Balaji said, adding that the combination of a chip shortage and strong demand has resulted in pending orders of around 168,000 vehicles at JLR.
across the globe have resorted to gradually hiking prices in a bid to deal with steep raw material and , which are squeezing profit margins at companies looking to recover from the .
Tata Motors has hiked prices at least four times in its 2022 fiscal year and Balaji said the carmaker was “at the absolute edge in terms of our ability to increase prices”.
Banks raising interest rates to contain inflation could also damage demand, he added.
Tata Motors reported a consolidated net loss of 10.33 billion rupees ($133 million), compared with a loss of 76.05 billion rupees a year earlier. Its total revenue from operations for the quarter fell by 11.5% to 784.39 billion rupees.
Its passenger vehicle business made a turnaround in the fourth quarter and demand remained strong, Tata Motors said.
Meanwhile its electric vehicle business is expected to deliver strong margins and profit in the current fiscal year, Balaji said, adding that electrification plans for Tata Motors and JLR will require investments in batteries and cells.
Balaji said Tata Motors expects up to 60 billion rupees of capital expenditure in the current year.