MOSL: TATA MOTORS (Buy)-JLR Sep-17 volumes grow 8.4% YoY to 57.4k units (in-line)-Volume of Land Rover up 9.2%

Tata Motors: JLR Sep-17 volumes grow 8.4% YoY to 57.4k units (in-line); Volume of Land Rover up 9.2%, while that of Jaguar grows 6.6%

(TTMT IN, Mkt Cap USD22.1b, CMP INR424, TP INR562, 32% Upside, Buy)

• JLR Sep-17 wholesale volumes grew 8.4% YoY (+29.1% MoM) to 57,365 units (in-line), including China JV’s contribution at 8,045 units (+23%).
  
• Jaguar volumes grew 6.6% YoY to 17,284 units (est. of 15,750), led by lower sales of XE.
  
• Land Rover (LR) volumes were up 9.2% YoY at 40,081 units (est. of 42,208), led by the ramp-up of the all-new Discovery in North America and China, and also RR Velar introduction in the UK and EU.
  
• JLR Sep-17 retail volumes increased 6.6% YoY (+69% MoM) to 65,097 units, led by an increase in LR and Jaguar volumes by 7.7% and 3.9%, respectively.
  
• Jaguar retail volumes were driven by F-Pace (to ~7.7k units) and XF (volumes up 29.4% YoY). Jaguar XE volumes declined 15.2% YoY.
  
• LR’s retail volumes increased 7.7% YoY, mainly led by a continued rise in Discovery Sport (+3.6%) and RR (+0.3%) volumes, while RR Sport and RR Evoque volumes declined 6.1% and 6.6%, respectively.
  
• Region-wise, China reported strong volumes at 13.8k units (+20% YoY), including China JV volumes of 7,929 units. Growth in China reflects the introduction of the long-wheel base Jaguar XFL, and also strong sales of F-PACE, Discovery Sport, Range Rover Sport and Evoque. Retail sales were down in the UK (-3.7%), but grew 1% in EU and 10.2% YoY in Rest of World.