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MOSL: TATA MOTORS (Neutral)-JLR’s Jan’19 wholesales below est. at 41.7k-Jaguar/Land Rover volumes decline 20%/14% YoY

Tata Motors: JLR’s Jan’19 wholesales below est. at 41.7k; Jaguar/Land Rover volumes decline 20%/14% YoY

(TTMT IN, Mkt Cap USD6.8b, CMP INR151, TP INR166, 9% Upside, Neutral)

 

• JLR’s wholesale volumes declined 16% YoY (-8% MoM) to 41.7k units (est. of 45k units), including the China JV volumes at 2.7k units (-61% YoY) in Jan’19.
• Jaguar volumes declined 20% YoY to 12.9k units (est. of 14k units), while Land Rover volumes declined 14.2% YoY to 28.8k units (est. of 31k units).
• JLR’s retail volumes declined 10.9% YoY; impacted by ~40% decline in China and ~6% decline in Europe. The US volumes grew 13.2% YoY, while retail in both Europe and RoW markets declined 1% YoY.
• Jaguar’s retail volumes declined 9% YoY as growth in models like E-Pace and I-Pace was offset by substantial decline in other models.
• LR’s retail volumes declined 11.6% YoY, as growth in Range Rover (+60%) and Range Rover Sport (+31.3%) was more than diluted by decline across other models.
• Felix Brautigam, Jaguar Land Rover’s Chief Commercial Officer said, “We have begun the new year with a stellar start in North America, achieving record January sales and significantly outperforming the industry, this reflects the strength of our brands and demand for our exciting product line-up. The economic slowdown in China continues to impact consumer confidence, but as part of our turnaround plan, we are working extensively with our retailers to rejuvenate sales.”