JLR's retail sales in China, which account for about one in every seven of its cars sold worldwide, fell by 40% year on year during the quarter, overshadowing growth in the U.S. and British markets. Tata Motors' loss came at Rs 26,993 crore ($3.78 billion) for the three months ended December 31, compared with a profit of Rs 1,199 crore in the year-ago period.
While non-cash asset impairment of Rs 27,838 crore was taken during the quarter under review, a severe slowdown in China impacted margin.
The impairment charges have been arrived at after taking into consideration the current assets on JLR's books, future investment, and "stress testing" it for low growth environment, coming particularly out of China, rising interest rates, and technological disruptions, he added.
Tata Motors reported a consolidated loss of ₹26,992.54 crore due to its biggest-ever write-off of 3.10 billion pounds for JLR.
JLR's revenue, however, declined 1 per cent to 6.2 billion pounds. "With these interventions, we are building Tata Motors group to deliver strong results in the medium term". The company has taken decisive steps to step up competitiveness, reduce the costs and improve cash flows while continuing to invest in exciting products and leading edge technologies.
For the quarter, Jaguar-Land Rover (JLR) reported a negative EBIT of 2.6 percent, which was 520 basis point (100 bps= 1 percentage point) lower than the same period previous year.
JLR reported revenues of £6.2 billion and a pre-tax loss before exceptional items of £273 million with 2.6% negative EBIT margin for the quarter.
Speth said: "This is a hard time for the industry but we remain focused on ensuring sustainable and profitable growth and making targeted investments that will secure our business in the future".
The company's sales in Europe were up slightly, despite an eight per cent drop in the overall market.
Commenting on the results, N Chandrasekaran, Chairman Tata Motors said, "Domestic business continues the strong momentum and has delivered market share gains as well as profitable growth".
"Fiscal year 2019 so far has been a challenging period for the industry".
Tata Motors shares on BSE closed up 2.64% at Rs 182.90 in a flat Mumbai market on Thursday.