MUMBAI (Reuters) - Tata Motors (TAMO.NS), India’s largest automaker by revenue, said its domestic operations would likely not post a profit or would have “inadequate” profit for the fiscal year that ended in March, hurt by sluggish demand.
Slowing economic activity, weak consumer sentiment, increasing competition and high interest rates impacted the company’s performance, Tata Motors said in a notice to the stock exchange on Tuesday.
The company’s Indian operations posted a profit of 3 billion rupees ($51 million) in the fiscal year ended March 31, 2013, a 75 percent fall from the previous year.
Tata Motors, part of the diversified Tata conglomerate, has grown reliant on its luxury Jaguar Land Rover unit over the last two years to make up for weak performance at home.
The company said it planned to launch new passenger vehicles from July to improve performance, without giving details.
Tata Motors had said in February it would roll out its Bolt hatchback and Zest compact sedan in the second half of the year.
The company will report its results on Thursday.
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Reporting by Aradhana Aravindan