Profit for the 3 months ended Sept. 30 fell to 18.77 billion rupees from 22.23 billion rupees a year earlier, Tata motors said. The figure was below the 20.24 billion rupees average of estimates among nine analysts but combine sales increased 27% to 359.38 billion rupees.

Expensive car loan, Costlier fuel and extended inflationary pressures have rounded demand for cars and SUV in India in this financial year through March. Rising prices of steel, natural rubber and other raw materials are also denting auto makers' profits.

Sales of Tata Motors' cars and Suv’s turn down 16% during April. Truck and bus sales growing 15%.

"Interest rates hikes last time, fuel price rise and overall expectations are of lower industrial growth which has slowed down the economy and demand,"

Tata motors biggest contributor in profit is Jaguar Land Rover, Company bought from Ford motors Co. in 2008. JLR sales rose by 30%. Ahead of the results, shares of Tata Motors fell 2.1% to 177.90 rupees, under performing a Mumbai market that declined 0.4%.