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MOSL: TATA MOTORS (Buy)-JLR’s Aug-2018 wholesale above estimate at 42.7k units-Jaguar +29.4% YoY (+14.3% MoM)

TATA MOTORS: JLR’s Aug-2018 wholesale above estimate at 42.7k units; Jaguar +29.4% YoY (+14.3% MoM), while Land Rover -14.9% YoY (+26% MoM)

(TTMT IN, Mkt Cap USD12b, CMP INR276, TP INR353, 28% Upside, Buy)

 

• JLR’s wholesale volumes declined 4% YoY (+21.9% MoM) to 42.7k units (estimated 29.5k units), including China JV volumes at 4.1k units in Aug-2018.
• Jaguar volumes increased 29.4% YoY (+14.3% MoM) at 14.2k units (estimated 9.5k units), while Land Rover volumes declined 14.9% YoY (+26% MoM) to 28.5k units (estimated 20k units).
• JLR’s retail volumes declined by 4.9% YoY (+1.3% MoM) to 36.6k units as Jaguar retail increased 7.7% YoY (+7.4% MoM) to 11.8k units, driven by the introduction of E-PACE and I-PACE, as well as XE long wheelbase sales in China.
• LR retail declined by 9.9% YoY (-1.3% MoM) to 24.8k units as increased sales of the Velar and refreshed Range Rover were offset by an impact of lower sales in China due to Range Rover Evoque and Discovery Sport.
• In Jaguar, all brands witnessed a decline except XE, which grew 14% YoY (+8.8% MoM). E-pace and I-Pace volumes came in at 2.8k units and 140 units respectively.
• LR’s retail volumes declined 9.9% YoY (-1.3% MoM) to 24.8k as most models witnessed a decline except Range Rover (+1.9% YoY) and Velar, which reported 4.3k units in Aug-2018 (1.6k units in Aug-17).