However, the ongoing stress in the China market for the company’s cash cow, Jaguar Land Rover (JLR), meant it came in almost half of what it was in the quarter ended March 31, 2018. The net profit was, however, much above the Bloomberg consensus estimates of Rs 570 crore.

Tata Motors had posted a loss for the third-quarter, hurt by an impairment charge for its luxury car unit Jaguar Land Rover. The automaker's loss came at ₹26,993 crore for the three months ended 31 December.

State-owned Chery already has a JV with Tata Motors-owned Jaguar and Land Rover to make cars in China. The partnership was formed in 2012 and helped Jaguar Land Rover open their first assembly facility in Changshu, China in October 2014.

Already, market leader Maruti Suzuki India (MSI) has stated that it would discontinue diesel models from April 1, 2020, when the BS-VI norms kick in, as it expects the increased cost would put most of the diesel cars, especially the smaller ones, out of reach of small car buyers.

The company’s passenger vehicle sales in the domestic market declined by 26 per cent to 12,694 units last month as compared with 17,235 units in April 2018.

The company will face stiff competition in the sub-4 metre compact SUV segment from the likes of Maruti Suzuki Vitara Brezza, Tata Motors Nexon, Mahindra XUV300 and Honda WR-V.

As reported earlier by Business Standard, Tata Motors had won tenders to supply buses to Lucknow, Jammu, Kolkata, Indore, Guwahati and Jaipur under the first phase of a programme to promote the use of electric vehicles in cities.

The company has raised $103.8 million as yet, according to CrunchBase. Last year, M&M had pumped in up to Rs 176 crore in Zoomcar India and Zoomcar Inc, its US incorporated holding parent company.