India's top vehicle maker Tata Motors, which this year bought Jaguar and Land Rover, on July 30 reported that quarterly profit fell 30%, hit by higher input costs. A sharp rise in domestic interest rates to battle inflation also hit demand for its trucks and cars.
Net profit for three months to June fell to 3.26 billion rupees (US$76 million) from 4.67 billion rupees a year earlier on revenues which rose 14.4% to 69.2 billion rupees, the company said.
Tata Motors sold 133,079 vehicles for the quarter, including exports, from 128,095 vehicles a year earlier.
Tata Motors' production costs have risen as a result of a rise in steel prices while official interest rates are at seven-year peaks.
Tata Motors, which earlier this year completed its acquisition of Jaguar and Land Rover from Ford for $2.3 billion, is set to launch the world's cheapest car at just 100,000 rupees (US$2,500). The launch of the Nano small car is expected later this year.
Copyright Agence France-Presse, 2008