Tata-Owned Jaguar Land Rover Sees Retail Sales Fall 3% In September Quarter

Jaguar Land Rover Ltd. (UK) reported a decline in retail sales even as business in its home country improved. The retail sales of JLR, including the Chery Jaguar Land Rover China Joint Venture, fell 3% year-on-year to 103,108 units in the quarter ended September 2024, according to an exchange filing by Tata Motors.

Retail sales in the first half of the current fiscal were also up 3% year-on-year, reaching 214,288 units.

Compared to the previous year, retail sales in the UK increased 29% on annual basis and 9% in North America, while they fell 22% in Europe, 17% in China, and 6% overseas.

Wholesale volumes of 87,303 units in the second quarter of the financial year (excluding the Chery Jaguar Land Rover China JV) fell 10% compared to the same quarter a year ago due to restricted aluminium supplies.

At the end of September, a temporary hold was implemented on approximately 6,500 vehicles, primarily in the UK and Europe, to facilitate extra quality control inspections. These vehicles are scheduled to be wholesaled in the latter half of the year.

The Tata Motors Ltd. owned company expects production and wholesale volumes to "pick up strongly in the second half of the fiscal."

The overall mix of the most profitable Range Rover, Range Rover Sport, and Defender models was 67% of total wholesale volumes.

JLR will announce its second-quarter financial results by early November.

Supply disruptions from a key high-grade aluminium supplier limited the firm's production in the quarter to approximately 86,000 units, down 7% from a year ago and affecting multiple original equipment manufacturers.

Shares of Tata Motors closed 0.26% lower at Rs 927.85 apiece on the NSE, compared to a 0.87% decline in the benchmark Nifty 50.

The stock has fallen 19.02% on a year-to-date basis and 49.14% over the past 12 months. The relative strength index was at a downturn of 38.70.

Out of the 35 analysts tracking the company, 22 have a 'buy' rating on the stock, eight suggest a 'hold' and five recommend a 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price targets implies a potential upside of 26.2%.