Tata Motors reports a 6% yoy decline in global sales in July 2011:: Angel Broking,

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Tata Motors reports a 6% yoy decline in global sales in July 2011
Tata Motors reported a 6% yoy (5% mom) decline in global sales volume in July 2011 to
85,392 units on account of a steep 24% yoy decline in passenger vehicle sales. Global
commercial vehicles (including Tata Daewoo and Tata Hispano Carrocera range), on the
other hand, witnessed healthy 16% yoy (4.3% mom) volume growth to 47,238 units.
Global passenger vehicle volumes stood at 38,154 units, registering a decline of 14.4%
mom, primarily on account of a decline in domestic passenger vehicle volumes. Jaguar
and Land Rover (JLR) posted marginally lower-than-expected 1.4% yoy (6.1% mom) decline
in volumes to 19,119 units. Jaguar sales registered an in-line 23% yoy decline (up 8.3%
mom) to 4,372 units, while Land Rover sales came in lower than expected, posting modest
7.6% yoy (down 9.6% sequentially) growth to 14,747 units. Volume decline at JLR can be
attributed to moderation in demand in the key markets of US, UK and Europe; however,
demand in China and Russia continues to remain strong. We expect JLR sales to gain
momentum going ahead, with the launch of highly anticipated Evoque in September 2011
and the new Jaguar XF. We maintain our Accumulate rating on the stock with an SOTP
target price of `917.