Tata Motor's shares skid due to rising sales of popular Range Rover Evoques
Shares in India-owned Tata Motors have slumped amid reports the company issued a profit warning at its highly profitable UK-based subsidiary Jaguar Land Rover.
The group said a 13.3 percent rise in retail sales to 88,658 cars in the three months to the end of December boosted revenue by more than the previous two quarters.
But Tata blamed soaring sales of its popular Range Rover Evoque, as well as exchange rate volatility, for an expected slight fall in its profit margin against the last six months, the Daily Express reports.
The average price of an Evoque and other cheaper models such as the Land Rover Freelander and Jaguar XF is about 30,000 pounds, compared with an average of about 42,000 pounds for other more expensive models.
According to the report, shares in Tata Motors fell by 10 percent on the Mumbai stock exchange, the biggest proportion since May.
Jaguar Land Rover is under pressure to invest more to keep up with upmarket car buyers' appetite for new or upgraded models.
The firm said it expected capital spending to increase as a proportion of revenue in the near to medium term, the report said.
It is spending about 2 billion pounds in the 2012-2013 financial year and 2.75 billion pounds in the year that begins in April, the report added.