competition will impact the standalone financial profile of Tata Motors Limited (BB/ Stable), the strong performance of its subsidiary Jaguar Land Rover PLC (BB-/Stable), which makes premium cars, will mitigate the impact.
Fitch believes that two-wheeler market will be the only segment to register marginally positive demand growth in the near term. Sales of two wheelers increased by 18% in September and October 2013. The recent volume growth has been driven by improving rural demand and stronger demand for scooters in urban centres.
The good rains during the year are likely to result in improved agricultural productivity, which will drive growth in rural demand for two wheelers, although sales will likely increase at a slower pace.
(The above statement was released by the rating agency)