Jaguar Heads for an Indian Pothole
Cash demands from parent Tata Motors may undermine its ability to compete.
The British carmaker is sending more dividends to its Indian parent at a time when it needs to preserve cash to invest.
Photographer: Bill Pugliano/Getty Images
Big trucks are all the rage in India, but Tata Motors Ltd.’s fortunes are still riding on a luxury marque that isn’t quite built for the subcontinent’s roads.
Medium and heavy-duty commercial vehicles have been the fastest-growing segment of India’s rapidly expanding auto market, with sales up more than 60 percent in May from a year earlier as transport companies upgrade fleets. That’s been a tailwind for Tata Motors, one of the country’s biggest truck manufacturers: The company reduced net losses at its local operations in the financial year ended March 31 and managed to expand still-slim Ebitda margins, despite large one-time restructuring charges.