MUMBAI (AFP) - - India's top vehicle maker Tata Motors, which this year bought motoring icons Jaguar and Land Rover, reported Wednesday that quarterly profit fell 30 percent, hit by higher input costs.

A sharp rise in domestic interest rates to battle inflation also hit demand for its trucks and cars.

Net profit for the three months to June fell to 3.26 billion rupees ($105 million) from 4.67 billion rupees a year earlier on revenues which rose 14.4 percent to 69.2 billion rupees, the company said in a statement.

Tata Motors' production costs have risen as a result of a rise in steel prices, while official interest rates are at seven-year peaks.

Tata Motors, which earlier this year completed its acquisition of Jaguar and Land Rover from ailing US carmaker Ford for 2.3 billion dollars, is set to launch the world's cheapest car at just 100,000 rupees (2,500 dollars) later this year.

The company plans to raise some 72 billion rupees through three rights issues to finance its purchase of Jaguar and Land Rover.

Tata Motors said consolidated earnings were not provided since financial statements for Jaguar and Land Rover were being compiled.

"While higher interest rates and reduction in overall vehicle financing continue to affect retails, the company is improving market share in segments where it has already introduced new products," a company statement said.

Margins were expected to remain under pressure due to rising input costs, chief financial officer C. Ramakrishnan told reporters.

Tata Motors' operating margin fell to 7.7 percent during the first quarter from nine percent in the same period a year earlier.

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