Angel Broking, Tata Motors – Global sales grow by 16% in January 2011

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Tata Motors – Global sales grow by 16% in January 2011
Tata Motors reported 16% yoy and 9.6% qoq growth in its global sales volumes for January
2011 to 98,998 units. Volume growth was led by healthy 14% and 17% yoy growth in the
commercial and passenger vehicle segments, respectively. Sales of luxury brands Jaguar and
Land Rover (JLR) continued their momentum during the month, posting strong 25% yoy
growth (down 4.6% mom) to 20,377 units. Jaguar sales were marginally lower than
expected, while Land Rover sales came in slightly ahead of our estimates. Jaguar sales rose
by 2.8% yoy to 3,056 units, whereas Land Rover sales jumped by 30.3% yoy to 17,321 units.
We expect JLR to maintain its volume growth going ahead, owing to the sustained
momentum in the luxury car market globally and specifically in the US and China. We
maintain Buy on the stock with an SOTP Target Price of `1,384.