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MOSL: TATA MOTORS (Buy)-JLR Mar-17 volumes above est. at 71,609 units (+11% YoY)-Volumes of LR flat, while Jaguar volumes up ~53%

​Tata Motors: JLR Mar-17 volumes above est. at 71,609 units (+11% YoY); Volumes of LR flat, while Jaguar volumes up ~53% driven by F-Pace and XE

(TTMT IN, Mkt Cap USD25.0b, CMP INR475, TP INR609, 28% Upside, Buy)

• JLR Mar-17 wholesale volumes grew ~11% YoY (+31% MoM) to 71,609 units, exceeding our estimate of 68,155 units.
• Jaguar volumes grew ~53% YoY to 20,492 units (est. of 19,780 units), driven by F-Pace and XE. Also, XF long-wheel base exhibited good growth in China JV.
• Land Rover (LR) volumes were flat YoY at 51,117 units (est. of 48,375 units), with continuing strong sales of Discovery Sport, Evoque and Range Rover Sport offset by the run-out of Defender and Discovery.
• JLR Mar-17 retail volumes grew ~21% YoY (+122% MoM) to 90,838 units, driven by an increase of 83% in Jaguar volumes and ~5% in LR volumes.
• Jaguar retail volumes were driven by F-Pace (to ~10.8k units) and XE volume growth of ~16% YoY. Jaguar XF volumes too increased ~14% YoY.
• LR's retail volumes grew ~5% YoY, mainly led by strong growth in Discovery Sport (+13%), RR Evoque (+13%), RR Sport (+12%) and RR (+20%), partly offset by a decline in Discovery (-30%) and run-out of Defender. Sales of the all-new Discovery began in Feb-17, with 4,862 units retailed since its launch.