Tata Motors has reported that its operations swung to a third quarter profit from a loss a year earlier as demand for its vehicles increased, helped by new launches and the Indian government’s economic stimulus programme.
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Tata reported a net profit of 4bn rupees (US$85m) for the three months to December, compared with a net loss of 2.63bn rupees a year earlier.
Tata Motors’ revenue jumped 88.7% to 89.8bn rupees for the quarter.
The firm said that the introduction of new products and ‘strong sustained growth in the existing portfolio, along with government stimulus, a benign liquidity environment and overall economic recovery’ had driven a domestic demand revival.
Tata Motors sales volume for the quarter (including exports) stood at 165,413 vehicles – 67.5% ahead of the same quarter of the previous year.
In the domestic market, commercial vehicles sales increased by 88.8% to 93,520 vehicles, leading to a market share of 64.3%, Tata said.
Tata said that its passenger vehicle sales, including Fiat, and Jaguar Land Rover vehicles distributed in India, grew by 46% in the domestic market to 61,593 vehicles in the quarter.
The company launched the new Indigo Manza during the quarter which saw the Indigo range sales grow by 63.5% over Q3 2008-09, substantially higher than the 35% growth of the entry mid-size sedan market, it said.
Tata said it has also ramped up the production rate of the Nano at the plant in Uttarakhand, and has, up to December 31, 2009, delivered 17,537 units of the Nano.
