Tata Motors spurts as JLR sales recover in December

Tata Motors rallied 6.97% to Rs 235.45 after the company's foreign arm, Jaguar Land Rover (JLR), marked the end of 2020 with a second successive quarter-on-quarter recovery in sales, despite the continuing impact of COVID-19.

Retail sales for the quarter ending 31 December 2020 stood at 1.28 lakh vehicles, registering a 13.1% growth over 1.13 lakh vehicles sold in the preceding quarter, but down 9% on the same period last year. China sales rose 20.2% as against the prior quarter and 19.1% year-on-year (Y-o-Y). Retail sales in most other regions also continued to recover and were up significantly on the prior quarter in North America (up 31.7%), Overseas (up 26.6%) and Europe (up 20.5%). However, sales in these regions have not yet recovered to pre COVID-19 levels with sales for the quarter lower than a year ago in North America (down 17.2%), Overseas (down 20%), Europe (down 16.3%) and the UK (down 8.9%).

Retail sales of Jaguar advanced 2.7% quarter-on-quarter (Q-o-Q) and dropped 20.8% Y-o-Y to 28,072 units in Q3 December 2020. Similarly, Land Rover sales soared 16.4% Q-o-Q while its Y-o-Y sales skid 5.1% to 1 lakh units in Q3 December 2020.

The sales ramp-up of the new Land Rover Defender saw retails rising to 16,286 vehicles in the October to December quarter, up by almost 66% on the preceding quarter with sales of the shorter wheelbase Defender 90 having initiated. For Jaguar, retail sales of all-electric I-PACE jumped 69.3% Y-o-Y with 7,807 sold in the quarter, as demand for electric vehicles continues to grow.

For the calendar year 2020, JLR retail sales were 4.25 lakh units, recording a 23.6% drop as compared to 2019, reflecting the industry impact of COVID-19 particularly in the first half of the year when plants were shut down for more than two months. However, the company has since seen sales increase Q-o-Q by over 53% in the quarter ended 30 September 2020, followed by the 13.1% increase in the most recent quarter.

In response to strengthening global demand, JLR has continued to roll out its new range of 21 Model Year vehicles, incorporating the very latest technologies. The company remains committed to its electrification strategy and has a growing portfolio of electrified Jaguar and Land Rover vehicles, embracing fully electric, plug-in hybrid (PHEV) and mild hybrid (MHEV) vehicles, as well as continuing to offer the latest diesel and petrol engines, giving its customers even more choice. Following the significant expansion over the year, electrified options now extend to 12 models across the Jaguar and Land Rover portfolios, with PHEV available on 8 vehicle lines and MHEV on 11, as well as the all-electric Jaguar I- PACE.

With sales of new electrified vehicles including the Land Rover Discovery Sport and the Range Rover Evoque PHEVs ramping up through the October to December quarter, a total of 53% of the company's retail sales for the 3-month period were electrified. This included 6.1% all-electric, 5.5% PHEV and 41.4% MHEV. This brings the share of electrification to 43.3% of the company's sales for 2020, with that figure poised for further growth in 2021 and beyond.

Tata Motors reported a consolidated net loss of Rs 343.28 crore in Q2 FY21 as compared to a net profit of Rs 175.76 crore in Q2 FY20. Net sales during the quarter declined 18.4% year-on-year (Y-o-Y) to Rs 52,839.02 crore.

Tata Motors, part of the Tata group, is a global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses.

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