The net profit of Auto major Tata Motors declined 34 percent in the July-September period. Its net profit stands at Rs 346 crore which was Rs 526 crore last year. The company has to pay for high input cost, high interest rates and world financial crisis. The sale of auto major increased 7% to Rs 7029 crore in the same period. But its operating margin fell to 8.13% which was earlier 9.2%.

The company is the largest commercial vehicle company of the country. It is all set to launch the cheapest car of the word in a short time. It has also acquired marquee brands, Jaguar and Land Rover (JLR). It reported total sale fall of 11 percent from all units including subsidiaries with the sale of 61,421 units in the September quarter. Sale of jaguar increased to 17,535 units while sales of Land Rover fell from 54,264 units to 43,886 units.

MD of company, Ravi Kant said that almost all automobile companies are suffering from high interest rates and liquidity problem. The company would start cost effective measures for strengthening its position in the automobile industry.