Following Jaguar Land Rover’s mixed-bag Q3 volume results, the price of Tata Motors’ stock fell more than 3% in early trading. Retail sales, meanwhile, fell 3% while wholesale sales increased 3%.
The price of Tata Motors’ shares began Thursday at ₹798.95 on the BSE, somewhat higher than its closing price of ₹794.85. Following that, the Tata Motors share price fell to a low of ₹769.66, representing a more than 3% drop. On Wednesday after market hours, Jaguar Land Rover, a wholly owned subsidiary of Tata Motors, released its volume figures to the stock markets.
High Rise in Whole Sales:
With 104,427 vehicles sold in Q3 FY25 (not including the Chery Jaguar Land Rover China joint venture), Jaguar Land Rover, or JLR, wholesales increased 3%yearlyr over Q3 FY24. After supply difficulties in the second quarter of FY25, wholesale volumes during the third quarter (the three months ending December 31, 2024) showed a positive increase. Sequentially, JLR wholesales increased by 20%.
According to a corporate announcement, wholesale volumes were lower in China (38% lower), the UK (17% lower), and overseas (1% lower) than they were in North America (44% higher) and Europe (6% higher) compared to the previous year.
At 289,485, wholesale volumes for the current fiscal year were 1% lower than those of the previous year.
Jaguar Land Rover retail sales of 106,334 units in the third quarter (including the Chery Jaguar Land Rover China JV) were up 3% from Q2 FY25 and down 3% from Q3 FY24, according to an announcement from Tata Motors. Up 1% over the previous year, retail sales during the current fiscal year were 320,622.
According to a business announcement, the proportion of total wholesale volumes comprising the most lucrative Range Rover, Range Rover Sport, and Defender models rose to 70%. Range Rover’s demand was exceptionally high during the quarter, as evidenced by wholesale volumes that were up 22% from the same quarter last year and up 48% from Q2 FY25, partly because of the resolved temporary supply chain problems.
Analysts Views:
Motilal Oswal Financial Services analysts stated that the JLP full sale figures were consistent with their projections.
Due in significant part to cost pressure, especially in JLR, and reduced growth projections across core industries, Tata Motors’ stock has corrected almost 32% from its high, according to MOFSL. Because of the following factors, MOFSLanalysts believe JLR will likely experience ongoing margin pressure over FY24–27: 1) weak demand in key regions; 2) rising cost pressure as it invests in demand generation; 3) normalizing mix; and 4) EV ramp-up, which is likely to be margin-dilutive, even though management has maintained its guidance for JLR during 2QFY25 results. According to experts, demand for both CV and PV enterprises is moderate, even in India.
