Jaguar Land Rover parent Tata Motors reported a bigger quarterly loss on Friday, as the coronavirus crisis hammered sales in several of its key markets.
Sales at JLR, which accounts for most of the company's revenue, fell more than 42 percent during the quarter and Tata Motors said the outlook for the unit remains uncertain.
Jaguar Land Rover will slash costs by more than already planned after the coronavirus pandemic battered results in the first quarter of its fiscal year.
The automaker increased its savings target for the year to 2.5 billion pounds ($3.3 billion).
JLR already was struggling with a sales downturn, Brexit uncertainty, stricter emissions rules and a dip in exports to China -- one of its biggest markets -- before the health crisis hit. It’s now adding 1 billion pounds to cost-cutting efforts to shore up earnings after measures to contain the spread of the virus forced factories and showrooms to shut around the globe.
"For the rest of FY21, Jaguar Land Rover will continue to manage costs and investment spending rigorously," the company said in a statement.
Earlier this week, the unit named ousted Renault boss Thierry Bollore as its next CEO, with a mission to return the U.K. automaker to profit.
Tata reported a consolidated net loss of 84.38 billion rupees ($1.13 billion) for the first quarter ended June 30, compared with a loss of 36.98 billion rupees ($493.8 million) a year earlier.
The company said it looks forward to a gradual pickup in demand and improvement in supply in the second half of fiscal 2021 as overall economic activity picks up.
Tata total revenue from operations fell 48 percent to 319.83 billion rupees ($4.3 billion) in the quarter as its home market, India, went into a lockdown due to the pandemic.
Bloomberg contributed to this report.