Retail sales in Q1 FY23 were 78,825 vehicles, broadly flat compared with Q4 FY22 and down 37% compared with Q1 FY22. Revenue was £4.4 billion in Q1 FY23, down 7.6% from Q4 FY22, impacted by supply challenges including semiconductor shortages, slower than expected ramp-up of the New Range Rover and New Range Rover Sport production, and China lockdowns. The customer order book grew further to 200,000 vehicles. The loss before tax in the quarter was £(524) million before a £155 million favourable exceptional pension item. The loss primarily reflects the lower wholesale volumes with the weaker mix, as well as unfavorable inflation of £(161) million and currency and commodity revaluation of £(236) million year on year. The EBIT margin was (4.4)% reflecting the lower volumes and unfavorable mix. Free cash flow was negative in the quarter £(769) million, primarily reflecting £(616) million in unfavorable working capital movements.

Tata Commercial Vehicles (Tata CV): Tata CV business witnessed strong volume growth as compared to Q1 FY22 (a Covid impacted quarter). The growth in Q1 FY23 has been broad-based across regions and segments. For India business, domestic wholesales were at 95,895 vehicles (+124% YoY). Exports were however at 5,218 vehicles, a lower 22.6% affected by the financial crisis in few export markets. The margin improvement was aided by higher volumes, realizations, and stable commodity prices.

Tata Passenger Vehicles (Tata PV): Tata PV business continued its strong momentum with wholesales at 130,351 vehicles, up 101.7% vs Q1 FY22. Demand for passenger vehicles continued to stay strong in Q1 FY23 even as the supply side remained moderately impacted. The SUV portfolio contributed 68% of Q1 FY23 sales. The margin improvement was led by strong volumes, improved mix, and the impact of higher operating leverage.