Launch triumphs, JLR margin turn the ignition key to gains for Tata Motors

Some brokerages foresee growth via higher market share, prices, margins

The restructuring of domestic operations over the next year, coupled with new launches, increased sales at subsidiary Jaguar Land Rover (JLR), and continued deleveraging, are pivotal factors propelling automotive giant Tata Motors forward.

Momentum in sales volume is expected to be a major driver for the company. JLR’s April-June quarter sales surpassed expectations, showing a 5 per cent year-on-year (Y-o-Y) increase, with retail sales up by 9 per cent.

The sales mix at JLR has also been favourable, with the higher-margin Range Rover, Range Rover Sport, and Defender models accounting for 68 per cent of total volumes.