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MOSL: TATA MOTORS (Buy)-JLR’s April 2018 wholesales in-line at 45.3k units-Land Rover volumes up 3.7% YoY

Tata Motors: JLR’s April 2018 wholesales in-line at 45.3k units; Land Rover volumes up 3.7% YoY; Jaguar volumes grow 18% YoY

(TTMT IN, Mkt Cap USD16.7b, CMP INR331, TP INR565, 71% Upside, Buy)

 

• JLR’s wholesale volumes grew 8% YoY (declined 40.6% MoM) to 45.3k units (including China JV’s 7.7k units) in April 2018.
• Jaguar volumes grew 18% YoY to 14.9k units, beating our estimate of 13k units. Land Rover volumes were 30.4k units, lower than our estimate of 32k units.
• JLR’s retail volumes grew 11.9% YoY (declined 46% MoM) to 45.2k units, as Jaguar retails grew 8% YoY (declined 45.3% MoM) to 13.3k units while LR retails increased 13.6% YoY (declined 46.3% MoM) to 31.2k units.
• The growth in Jaguar volumes was led by E-pace (3.1k units). Volumes of other models like XF, F-Pace, XE declined YoY by 1.9%, 23.4% and 7%, respectively.
• LR’s retail volumes increased 13.6% YoY to 31.9k, led by Discovery (+66.7% YoY), RR Sport (+4% YoY) and Velar (4.8k units).
• Region-wise, China volumes grew 28.9% YoY to 12.9k units. The growth in China is reflecting the introduction of the long wheelbase Jaguar XFL and XEL. Retails in the UK and US markets grew YoY by 25.9% and 2.5%, respectively. Retails in Europe markets declined 10.2%.