Robust Jaguar Land Rover sales in June quarter power up Tata Motors

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British luxury automaker Jaguar Land Rover (JLR), a wholly owned subsidiary of Mumbai-based auto giant Tata Motors, reported a 30 per cent year-on-year jump in wholesale volumes and 29 per cent growth in retail sales in the June quarter 2023. -24 (first quarter of fiscal year 24) to improve the supply of semiconductors.

The company said Friday that JLR’s wholesale volumes, excluding those from its joint venture in China, came to 93,253 units in the first quarter, while retail sales jumped to 101,994 units. JLR may post free cash flow of around $510 million (roughly Rs. 4,200 crores) for the first quarter, it said.

JLR accounts for nearly 60 percent of Tata Motors’ revenue from operations.

After JLR’s strong sales figures, shares of Tata Motors hit an all-time high of Rs 624.65 on BSE before settling at Rs 618.45, up 2.9 per cent. The market capitalization of Tata Motors excluding Differential Voting Rights (DVR) crossed the 2 trillion rupee mark for the first time and stood at 2.05 trillion rupees. Including DVR shares, the company’s market capitalization stood at 2.22 trillion rupees as of Friday.

Demand for JLR’s Range Rover Sport and Defender was high in the first quarter, accounting for about 76 percent of the order book. “Retail sales of our three most profitable models were up significantly compared to the same quarter last year, with Range Rover up 199 percent, Range Rover Sport up 42 percent and Defender up 90 percent,” the company said.

The company said JLR’s order book fell from 200,000 units at the end of March to 185,000 at the end of June in line with expectations, as “chip and other supply constraints” continued to improve.

JLR’s wholesale volumes as well as retail volumes were down about 1 percent compared to the March quarter. Compared to the previous year, retail volumes were higher overseas (up 83%), North America (up 42%), China (up 40%) and the UK (up 6%) while they were flat in Europe.

JLR will report its full financial results for the first quarter later in July. Tata Motors’ first-quarter results are due on July 25.

The Tata Motors Group’s global wholesale sales in the first quarter of FY24, including JLR, were 322,159 units, up 5 percent year-on-year. JLR numbers do not include Chery Jaguar Land Rover – JV sizes between JLR and Chery Automobiles. In a notice to the exchanges, the company said global wholesale sales of all commercial vehicles of Tata Motors and Tata Daewoo Group in the first quarter of fiscal 2014 were at 88,456 units, down 15 percent. Global wholesale sales of passenger cars from Tata Motors reached 140,450 units, an increase of 8 per cent compared to the first quarter of FY23. In the electric vehicle segment, the company doubled its sales in the June quarter to 19,346.