New Delhi, Jan 29 (PTI) Amid a challenging external environment, Tata Motors Group CFO PB Balaji emphasized the need for the Union Budget to consider measures that boost consumption to stimulate demand and foster domestic growth. Following a strong festive season, demand has weakened due to various factors, including tight liquidity and unfavorable market conditions, although Balaji noted that the situation is not critical. He expressed optimism for a gradual demand recovery, particularly in the fourth quarter, which typically sees stronger performance, aided by government infrastructure investments. Balaji stated, “If the Budget includes consumption-boosting measures, it will help us navigate the challenging external circumstances we all face.” He highlighted the importance of focusing on internal consumption to drive growth in light of external uncertainties.
Regarding expectations for the upcoming budget, Balaji welcomed any initiatives aimed at alleviating stress and accelerating growth, asserting that India’s investment-led growth narrative is unfolding. He remarked, “In a time of external challenges, why not strengthen our position to sustain domestic growth? As GDP increases, it benefits everyone.”
In the third quarter, Tata Motors reported a 22% decline in consolidated net profit to ₹5,578 crore, influenced by reduced revenue from its passenger and commercial vehicle segments, compared to ₹7,145 crore in the same quarter last year. The company’s consolidated total revenue from operations reached ₹1,13,575 crore, up from ₹1,10,577 crore in the previous year.
When asked about the potential impact of US President Donald Trump’s tariff threats on electric vehicles (EVs) exported from Europe to the US, Balaji stated that clarity is needed on the matter. He noted that the balance of payments between the US and the UK favors the US, which exports more to the UK. Tata Motors’ subsidiary, JLR, operates in the UK and manufactures EVs at the Castle Bromwich plant, while also producing SUVs in Slovakia. Balaji emphasized the importance of managing both demand and costs to navigate future challenges, asserting that JLR products are well-received in the US market, and ultimately, customer satisfaction hinges on delivering the right value and aspirational appeal.
