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MOSL: TATA MOTORS (Buy)-JLR’s May 2018 wholesales in-line at 48.8k units-Jaguar volumes up 21% YoY

Tata Motors: JLR’s May 2018 wholesales in-line at 48.8k units; Jaguar volumes up 21% YoY; Land Rover dispatches down 2.9% YoY

(TTMT IN, Mkt Cap USD15.4b, CMP INR310, TP INR471, 52% Upside, Buy)

 

• JLR's wholesale volumes grew 3.5% YoY (16.4% MoM) to 48.8k units (including China JV's 7k units) in May 2018.
• Jaguar volumes grew 21.1% YoY to 15.3k units (in-line) while Land Rover volumes declined 2.9% YoY to 33.5k units (in-line).
• JLR's retail volumes increased 6.1% YoY (6.9% MoM) to 48.3k units, as Jaguar retails grew 6.6% YoY (9.2% MoM) to 14.5k units, while LR retails increased 6% YoY (5.9% MoM) to 33.8k units.
• The growth in Jaguar volumes was led by E-pace (3.7k units). Volumes of other models like XF declined 24.6% YoY, F-Pace declined 23.1% YoY, and XE declined 5.6% YoY.
• Land Rover's retail volumes increased 6% YoY to 33.8k, led by Discovery (+13.9% YoY), RR Sport (+0.7% YoY), and Velar (5.4k units).
• Region-wise, UK sales grew 20.9% and US sales grew 16.7%. Sales declined 8.1% in China and 8.7% in Europe.
• Mr Felix Brautigam, Jaguar Land Rover Chief Commercial Officer said, "Strong demand for Land Rover vehicles drove our performance in May, particularly in the US and UK. The new, award winning Range Rover Velar was an important contributor. Also, our latest Range Rover and Range Rover Sport models, including plug-in hybrid options, have been performing particularly well in key markets."