Mumbai, Jan 31: Tata Motors Ltd, has posted an unexpected loss of 32 per cent in Dec quarter and this has affected the launch of Nano in the market. Nano car which is priced at Rs 100,000 was scheduled for launch in current quarter after being delayed from last year.
Tata Motors said auto demand in India had severely contracted as a result of financial market turmoil and weakening growth. "I do believe we had the worst in the December quarter, and don't expect to see anything like that. We are on a positive trend, and on the ascendancy curve," managing director Ravi Kant told reporters.
Last year, the Nano Plant was rolled out from West Bengal due to the protests from the West Bengal farmers. The Nano plant was shifted to Gujarat and it would take atleast a year to roll out Nano as from the new plant because of the time involved in shifting the equipment from its original site to the new site.
"We are looking at interim measures to produce the Nano in small numbers in one of the two (car) plants," Kant said, but said there was no date set for the launch.
Chief financial officer C Ramakrishnan said the company was in discussions with banks to refinance $2 billion of bridge loans, having already paid back $1 billion.
The loans, used to fund the $2.3 billion acquisition last year of Jaguar and Land Rover from Ford Motor Co, need to be repaid by June.
OneIndia News (with Inputs from Agencies)