MOSL: TATA MOTORS (Buy)-JLR’s Oct-17 volume of 49.8k units below est. of 55.5k-Volume of Land Rover grew 13.7% YoY

​Tata Motors: JLR’s Oct-17 volume of 49.8k units below est. of 55.5k; Volume of Land Rover grew 13.7% YoY, while that of Jaguar declined 13.1% YoY

(TTMT IN, Mkt Cap USD23.0b, CMP INR423, TP INR575, 36% Upside, Buy)

• ​JLR's Oct-17 wholesale volumes grew 5% YoY (-13.3% MoM) to 49,757 units (below est. of 55,500), including China JV at 6,880 units.
  
• Jaguar volumes declined 13.1% YoY to 13,295 units (est. of 16,250) due to lower sales of XE.
  
• Land Rover (LR) volumes were up 13.7% YoY at 36,462 units (est. of 39,300), led by ramp-up of the all-new Discovery in North America and China, and RR Velar introduction in the UK and EU.
  
• JLR Oct-17 retail volumes were flat YoY (-29% MoM) at 46,418 units, as a 6.8% YoY increase in Land Rover volume was offset by a 14.3% YoY decline in Jaguar volume.
  
• XF volume grew 10.4% YoY. Jaguar XE volume declined 44.7% YoY. F-Pace volume fell 9.4% YoY.
  
• LR's retail volumes increased by 6.8% YoY, mainly led by a 42% rise in Discovery volumes, while RR Sport and RR Evoque volumes declined 12.9% and 17.6%, respectively. RR Velar clocked in volumes of 4,770 units.
  
• Region-wise, China reported strong volume at 12.3k units (+12.4% YoY), including China JV volume at 7,085 units. Growth in China is reflecting the introduction of the long wheel base Jaguar XFL, as well as strong sales of F-PACE, Discovery Sport, Range Rover Sport and Evoque. While retail sales were down in the UK (-18.3%), the US (-3.2%) and Europe (-3.3%), Rest of world sales grew 15.7% YoY.