Chairman of Tata Motors Cyrus Mistry has said that the growth of the Indian automobile industry depends on the revival of the country’s mining sector.
Addressing Tata Motors’ shareholders at the company’s 70th annual general meeting, Mr. Mistry said “India’s automotive industry is expected to witness a gradual recovery during 2016.”
On the Indian economy, Mr. Mistry said, “while the policy initiatives are directionally intended to revive the manufacturing and infrastructure sectors, the challenges for the government still remain in the execution of these progressive policies.”
Speaking on the global economic scenario, the Tata Group Chairman said the global economy was expected to witness growth in certain key economies but the pace of growth would vary across geographies.
“JLR will continue to capitalise on strong, globally recognised brands, invest substantially in new products and technology and grow profitably both in existing and new markets world-wide.”
Mr. Mistry pointed out that the road ahead for Tata Motors “will be challenging yet full of opportunity. The company’s strategy will hinge on leverage the long term growth opportunity of India.”
No dividend for 2014-15
The board of directors of Tata Motors has not recommended a payment of dividend for 2014-15.
It is only the second occasion in 70 years that the board has not recommended the payment of a dividend, the previous one being in 2000-01.
“I personally on behalf of the board deeply regret non-recommendation of the same this year,” Mr. Mistry said. “Considering the continuing weak operating environment, the performance of the stand-alone business, in view of the losses of the year and in view of the new Companies Act and rules, dividend is not allowed to be paid for the year.”