FREE

MOSL: TATA MOTORS (Buy)-JLR’s Jan-2018 wholesales below estimate at 49.6k units; Jaguar volumes increase by 4.4% YoY

Tata Motors: JLR’s Jan-2018 wholesales below estimate at 49.6k units; Jaguar volumes increase by 4.4% YoY and land Rover volumes by 0.6% YoY

(TTMT IN, Mkt Cap USD19.5b, CMP INR369, TP INR515, 39% Upside, Buy)

 

• JLR’s wholesale volumes grew 1.8% YoY (-9.9% MoM) to 49.6k units (including China JV’s 8,125 units) in January 2018, as against our estimate of 55.6k units. In Jan-18, Jaguar volumes grew 4.4% YoY to 16,108 units (est. of 14,000 units). Land Rover (LR) volumes increased marginally by 0.6% YoY to 33.5k units (est. of 41.6k units), led by ramp-up of all-new Discovery and RR Velar.
• For YTDFY18, JLR wholesales grew 5.4% YoY to 500k units, as LR sales increased 8.7% to 361k units, while Jaguar sales declined 2.2% to 139k units.
• JLR’s retail volumes rose 2.9% YoY (-11.9% MoM) to 49.1k units. LR sales grew by 3.7% YoY to 35k units and Jaguar sales by 0.8% YoY to 14.1k units.
• XF volumes grew 11.7% YoY, while XE and F-Pace volumes fell 30% and 7% YoY, respectively. Retails of E-Pace came in at 1.46k units (454 units in Dec-17).
• LR’s retail volumes increased 3.7% YoY, mainly led by a 134% rise in Discovery volumes, while RR Sport and RR Evoque volumes declined 29% and 22%, respectively. RR Velar clocked in volumes of 5.9k units.
• Region-wise, China volumes grew 16.4% YoY to 14.9k units. The growth in China is reflecting the introduction of the long wheelbase Jaguar XFL and XE, as well as strong sales of F-Pace, Discovery Sport, Range Rover Sport and Evoque. Retails in the UK and Europe markets declined 3.7% and 8.7%, respectively, while those in the US remained flat YoY.