Tata Motors net revenue in Q1 FY2022 up 107.6 percent; looking to set-up scrappage units

Tata Motors is in talks with several players in the scrappage ecosystem to set up 2-4 vehicle scrappage units; consolidated net loss down to Rs 4,451 crore as against Rs 8,438 crore in Q1 FY2021

Published on Jul 27, 2021 06:03:00 PM

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Tata Motors has announced the sales performance and revenue results for Q1 FY2022. The homegrown carmaker reported that consolidated net loss narrowed down to Rs 4,451 crore in Q1 FY2022 as compared to Rs 8,438 crore during Q1 of FY2021.

  • Tata Motors’ consolidated net losses have narrowed down in Q1 FY2022
  • Tata Motors’ EV business delivered 5 times revenue growth and highest ever quarterly sales
  • The company is in talks with several players to supply vehicle scrappage technology
  • Plans to launch up to 10 new EVs by 2025

Tata Motors Q1 FY2022 results

The total revenue for Tata Motors in Q1 of FY2022 came in at Rs 66,406.05 crore, which is up by 107.6 percent year-on-year. More importantly, Tata’s EV business continues to grow rapidly and delivered 5 times revenue growth and highest quarterly sales, at 1,715 units, with just one product – the Tata Nexon EV. The company plans to launch as many as 10 EVs by 2025.

JLR's revenue in Q1 of FY2022 came in at 5 billion pounds sterling, up 73.7 percent year-on-year compared to Q1 of FY2021. According to the management, the shortage of semiconductors is a constraint, and the situation is very dynamic and difficult to forecast. JLR now expects the semiconductor supply shortage in Q2 FY2022 to be greater than in Q1, potentially resulting in wholesale volumes to dip nearly 50 percent compared to what’s planned. Thierry Bollore, CEO, Jaguar Land Rover said, “though the current environment continues to remain challenging, we will continue to adapt and manage elements that are within our control.”

PB Balaji, CFO, Tata Motors Group, however reiterated that the semiconductor shortage for the domestic market is not as serious as it is for the JLR business. The company expects the demand situation to improve despite pandemic uncertainty impacting the short term.

Tata Motors to supply vehicle scrappage tech

During the announcement of quarterly results, Balaji also informed that the company is looking to set-up 2-4 vehicle scrappage units before expanding to around 10 units in the coming years. Tata Motors is in talks with various players in the vehicle scrappage eco-system for supplying its technology to set-up new centres across the country. The ecosystem generally includes vehicle fitness centres, scrapping centres, manufacturers and ancillary players.

Balaji said, “The technology will be provided by Tata Motors,” adding that it is the dealerships which  will run these centres. Moreover, it will be used for vehicles belonging to all manufacturers.

Shahkar Abidi, Autocar Professional

 

Also see:

Tata Safari production crosses 10,000 unit milestone

Updated Tata Tiago NRG to launch on August 4, 2021

Hyundai Alcazar vs Tata Safari comparison video

Tata Power ties up with HPCL to set up EV charging stations

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