“The profitability of Tata Motors passenger car business depends on its ability to sell significant volumes of its new Zest and Bolt models,” Moody’s said in a statement. The company has Ba3 stable rating from the agency. “If TML sells at least 15,000 units a month of the Zest and the Bolt combined, its market share of the passenger car segment would be about 10 percent and re-establish the standing of the car business,” Moody’s vice-president and senior credit officer Alan Greene said.

“Such a sales figure would be a phenomenal turnaround for the company. It sold an average of 6,300 cars a month in the first four months of the fiscal year,” he added. Tata Motors, launched its first car in four years, in a bid to regain market share and plug losses in its domestic business. The Zest is priced at Rs 4.6 lakh and above and is available in diesel and petrol variants.

The compact sedan Zest competes with the established brands like Maruti D’zire, Honda Amaze and Hyundai Xcent. The company plans to launch the hatchback Bolt by the end of the year. On the company’s credit profile, the agency sees the company demonstrating weaker consolidated credit metrics this fiscal, but does not see any downgrade as it global arm JLR looks to continue to report strong set of numbers, helping to retain the current high rating level.

JLR revenue rose 31 percent to 5.4 billion pounds, while Ebitda jumped 68 percent to 1.1 billion pounds in the June quarter, helping the parent report the best ever net income growth in the past nine quarters which rose nearly fourfold to Rs 5,398.21 crore for the three months to June.

Strong JLR sales helped boost the company’s overall margins by a massive 550 bps to 20.3 percent from 15.8 percent a year ago, while margins at the domestic operations fell to minus 2.8 percent from 2.3 percent. Revenue from JLR jumped 54 percent to Rs 54,425.97 crore.

On the other hand, revenue from Tata and other brand vehicles and financing during the quarter were at Rs 9,898.38 crore, down 11.33 percent. JLR paid 150 million pounds dividend to the parent during the quarter. The domestic unit or the parent, has nearly halved net profit to Rs 394 crore, frm Rs 703 crore a year ago, as sales have been on the decline for many quarters.

But the agency warned that it expects the group’s liquidity to deteriorate during the fiscal as JLR is investing 3.7 billion pounds this fiscal up from 2.7 billion pounds last fiscal.

Zest booking numbers in two days: Tata Motors
Tata Motors on Tuesday said it will disclose the booking numbers for its new compact sedan Zest in the next two days.
"Booking numbers will be disclosed in two days," Tata Motors President passenger vehicle, Ranjit Yadav said here when asked about number of bookings Zest received in the pre-launch period.
The domestic car-maker had opened Zest booking from mid- July. Yadav said the company had received a good response so far on the new sedan.
Zest and Bolt were considered to be game changers for the Tata Motors passenger car mainly in the petrol segment.
The petrol version of Zest with new engine Revotron offered three drive modes, sport, eco and city.
Yadav declined to give any sale projections for Zest. He however, said the company would continue to invest Rs 3,000 crore a year of which half could be on passenger cars.
Recently chairman Cyrus Mistry had told shareholders at the annual general meeting, "Our capital expenditure plan for Tata Motors this year is Rs 3,500-4,000 crore and we will continue to invest for the next three year period."