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MOSL: TATA MOTORS (Buy)-JLR’s Nov’18 wholesales in line at 49.3k units (-9% YoY)-Jaguar volumes increase 23% YoY

TATA MOTORS: JLR’s Nov’18 wholesales in line at 49.3k units (-9% YoY); Jaguar volumes increase 23% YoY, while Land Rover declines 18.5% YoY

(TTMT IN, Mkt Cap USD7.0b, CMP INR157, TP INR246, 57% Upside, Buy)

 

• JLR’s wholesale volumes declined 9% YoY (+5% MoM) to 49.3k units (est. 50k units) including the China JV volume at 4.1k units (-49% YoY) in Nov’18.
• Jaguar volumes increased 23% YoY to 15.1k units (est. 14k units) while Land Rover volumes declined 18.5% YoY to 34.2k units (est. 36k units).
• JLR’s retail volume in Nov’18 declined 8% YoY, impacted by a 51% decline in China retail, while the UK, the US and Europe volumes showed a YoY growth of 3%, 18% and 6%, respectively.
• Jaguar’s retail volume grew 9% YoY, driven by models like E-pace and I-Pace; even as other models showed substantial decline.
• Land Rover’s retail volume declined 14% YoY, as growth in Range Rover (+16%) and Range Rover Sport (+22%) was more than diluted by decline across other models.
• Mr Felix Brautigam, Chief Commercial Officer of Jaguar Land Rover said, “We are encouraged to see our best ever November sales performance in North America, propelled by strong SUV sales. This performance was combined with growth in Europe and the UK where we have outperformed the market; a significant accomplishment in today’s challenging conditions. These positive regional results reflect our strong brands and attractive product line-up. In China, we continue to see significant market challenges but we remain focused on taking all the operational actions necessary to balance production with demand. Sales of Land Rover models were down this month but will receive a boost with the launch of the sophisticated all-new Range Rover Evoque in early 2019, a true and refined Range Rover with an amazingly compact footprint.”