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MOSL: TATA MOTORS (Buy)-JLR’s Mar-2018 wholesales in line at 76.2k units; Land Rover volumes increase 7.9% YoY

TATA MOTORS: JLR’s Mar-2018 wholesales in line at 76.2k units; Land Rover volumes increase 7.9% YoY; Jaguar volumes up 2.7% YoY

(TTMT IN, Mkt Cap USD25.0b, CMP INR358, TP INR528, 47% Upside, Buy)

 

• JLR’s wholesale volumes grew 6.4% YoY (+33.9% MoM) to 76.2k units (including China JV’s 7,126 units) in March 2018. Jaguar volumes increased 2.7% YoY to 21.04k units (est. of 21.2k units), while Land Rover (LR) volumes rose 7.9% YoY to 55.2k units (est. of 55.9k units).
• For FY18, JLR wholesales grew 5.4% YoY to 633.5k units, as LR sales rose 8.3% to 457.3k units, while Jaguar sales declined 1.4% to 176.2k units.
• JLR’s retail volumes declined 7.8% YoY (-109.8% MoM) to 83.7k units in March 2018. LR sales fell 5.7% YoY to 59.4k units, while Jaguar sales were down by 12.7% YoY to 24.3k units.
• XF, F-Pace and XE volumes fell 29.6%, 19.4% and 45.9% YoY, respectively.
• Retails of E-Pace came in at 5.1k units (1.9k units in Feb-18).
• LR’s retail volumes declined by 5.7% YoY in the month, as RR Sport and RR Evoque volumes fell 10% and 31.7%, respectively, while Discovery volumes rose 3.5% YoY. RR Velar clocked in volumes of 8.9k units.
• Region-wise, China volumes grew 10.9% YoY to 13.6k units in March. Growth in China is reflecting the introduction of the long wheelbase Jaguar XFL and XE. Retails in the UK and Europe markets declined 26% and 16%, respectively.