Tata Motors said on Tuesday that the company had resumed operations at all the plants, with the Jamshedpur plant also getting approval on May 27, 2020. Jaguar Land Rover (JLR) has also begun operations at its plants globally. About 70% of the showrooms, sales and service outlets and 43% of the sales outlets opened for commercial vehicles, covering about 56% of the retail market. For passenger vehicles, 59% of the showrooms resumed operations covering 69% of the retail market. Also, 80% of dealer workshops and Tata Authorised Service Stations (TASS) have commenced operations in CVs and 69% workshops have started for PVs. The company said that demand is gradually starting to improve. On the supply side, 90% of suppliers for CVs have received permissions to commence operations, while 80% have started operation, and only around 60% have been able to start the supplies. The supply side on the PV segment has seen 98% of suppliers receiving permission and also started operations.
As on March 31, 2020 the cash and cash equivalent of the company stood at Rs 4,700 crore and the undrawn credit facility of Rs 1,500 crore. To further shore up liquidity, the company has issued commercial papers of Rs 3,500 crore and also raised `1,000 crore through NCDs. As for JLR, the company’s joint-venture plant in Changshu (China) has been operational since March as vehicle sales recover there and customers return to showrooms following the easing of the lockdown. The company is gradually resuming production at the Solihull and engine plants in the UK, the Slovakia plant, and contract assembly line in Austria.
Most recently, about 36% of retailers worldwide are open and a further 39% are open but constrained, with UK dealers allowed to reopen in first week of June. The company said it has a strong liquidity position of £5.6 billion, with £3.7 billion of cash, financial deposits and £1.9 billion of undrawn credit facility as on March 31, 2020. “JLR is continuously shoring up liquidity and raised 220 million pounds through local funding and working capital facilities,” company said in a BSE filing.
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