RBS: Buy Tata Motors – Land Rover volume for Jan impress

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Tata Motors (TTMT IN, Rs1209.25, Buy) – Land Rover volume for Jan impress

January JLR sales volume recorded impressive 25% yoy growth driven by Land Rover. Even
though nearly 40% of March quarter JLR volume is usually recorded in the month of March alone,
the strength in Land Rover January sales impressed us. Jaguar historically sees the lowest
volume of the year in January.
Seasonally weak January volume surprises on yoy growth
􀀟 The low base effect helped record impressive 25% yoy growth in sales volume. However,
mom volumes slipped by 5%.
􀀟 The product mix shifted further in favour of highly profitable Land Rover as it scaled a new
peak to reach 85% of total JLR sales volume.
􀀟 Traditionally, 40% of the March quarter sales volume is covered in the month of March alone,
due to a number plate change phenomenon in its largest market, the UK.
􀀟 Hence, despite the weak mom January sales volume, we are confident of the company
achieving our estimates for the quarter.