Tata Motors' Jaguar Land Rover logs 37% decline in retail sales in Q1FY23; stock soars ~2%

8 Jul 2022 , 02:42 PM

Tata Motors-owned Jaguar Land Rover reported sales volume for the Quarter ended June 2022.  Despite a record order book, sales remain constrained by a global chip shortage, which has been exacerbated by the exhaustion of the previous model Range Rover Sport, with deliveries only now beginning, and the impact of Covid lockdowns in China.

Retail sales for the quarter under review stood at 78,825 vehicles, broadly flat (183 units lower) compared with the previous quarter ending March 31, 2022, and down 37% yoy (46k units) from the previous corresponding quarter.

Compared to the quarter ended March 31, 2022, the company logged higher retails in the UK (+10%) and Europe (+49%) but were lower in China (-5%), North America (-30%) and Overseas (-10%) reflecting the transition to new models and delivery times to these markets.

The company reported wholesale volumes of 71,815 units in the period (excluding our China Joint Venture), down 6% compared to the previous quarter ending March 31, 2022.

The Company’s products continue to be in high demand, with global retail orders setting new highs in the third quarter.

The total order book had grown to nearly 200,000 units as of June 30, 2022, a jump of around 32,000 orders since March 31, 2022. The New Range Rover, New Range Rover Sport, and Defender have received over 62,000, 20,000, and 46,000 orders, respectively.

At around 2.41 PM, Tata Motors was trading at Rs440.25 up by Rs9.45 or 2.19% from its previous closing of Rs430.80 on the BSE. The scrip touched intraday high and low of Rs443.80 and Rs429.50 respectively