Robust JLR sales drive Tata Motors to record high

Shares of Tata Motors extended their marginal gains and rose over 3 percent to hit a record high of Rs 621.50 on July 7, after the company reported a strong jump in its Jaguar-Land Rover sales during the April-June quarter.

The carmaker’s luxury arm, Jaguar-Land Rover’s wholesale volumes for the first quarter were at 93,253 units (excluding the Chery Jaguar Land Rover China JV), up 30 percent compared to the same quarter a year ago. Retail sales also rose 29 percent on year to 101,994 units (including the Chery Jaguar Land Rover China JV).

As compared to the previous fiscal, retail volumes rose the most in overseas markets, up 83 percent followed by  North America (up 42 percent), China (up 40 percent) and UK (up 6 percent) while the Europe market remained flat.

At 03.21 pm, shares of Tata Motors were trading at Rs 619.25, up 3.1 percent on the National Stock Exchange.

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Moreover, the automaker also said that its order book remained strong with over 185,000 client orders at quarter end, as chip and other supply
constraints continue to improve. Demand for Range Rover, Range Rover Sport and Defender were particularly strong as they made up 76 percent of the order book.

With the earnings season slated for a kickstart from next week, all eyes will be on the quarterly earnings of Tata Motors. Based on preliminary cash balances, JLR also expects to report positive free cash flow of over £400 million in the first quarter of FY24.

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