Tata Motors’ (TTM) shares reached year-high level on Dec 23 on the back of optimistic views revealed by the company. The shares rose 43 cents to $16.13 on Dec 23 compared to Dec 22.
Earlier this week, Tata Motors revealed that it expects to expand its market share in utility-vehicle space by 3% with the introduction of its Grande MKII utility vehicle. According to Dow Jones, the MKII could raise Tata’s utility-vehicle sales by about 30%. The company also expects to deliver 100,000 Nano cars, known as the peoples’ car for its affordability, to customers by the end of next year.
In the second quarter of its fiscal ended Sep 30, 2009, Tata Motors returned to profitability helped by aggressive cost reduction measures and recovery of sales for its Jaguar and Land Rover brands in the U.K. The company posted a net income of Rs.217.8 million ($4.7 million) in sharp contrast to a loss of Rs.9.4 billion ($201.7 million) during the second quarter of last year. Sales volume (including exports) for the quarter grew 17.4% to 158,575 vehicles.
Jaguar and Land Rover – acquired by Tata from Ford Motor (F) last year – went through massive restructuring programs after its acquisition. Last year, the company had cut about 2,500 jobs in the division. It has also frozen pay and canceled bonuses.
These have led Jaguar and Land Rover to post an operating profit of £41.29 million ($68 million) supported by a 23% growth of wholesale volumes over the previous quarter and aggressive cost reduction efforts.
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