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Shares of Tata Motors surged 8.4 percent intraday Monday on strong Jaguar Land Rover and medium & heavy commercial vehicle (MHCV) sales in September.

Its subsidiary Jaguar Land Rover (JLR) sold 6,850 vehicles in the US, higher by 61 percent compared to 4,248 vehicles sold in the year-ago period. Land Rover sales grew by 88.5 percent to 5,855 vehicles while Jaguar sales declined 12.9 percent to 995 units year-on-year, said the luxury car maker.

Land Rover models reported strong growth during the month with Range Rover rising 83 percent YoY, Range Rover Sport 94 percent, Discovery (LR4) 33 percent, Range Rover Evoque 71 percent and Discovery Sport 154 percent. However, Jaguar sales declined as XK reached the end of its life cycle. F-Type sales grew 7.6 percent, XF grew 3.1 percent but XJ declined 22 percent.

Jaguar sales in the US would improve materially with the launch of XE in 1QCY16, said Macquarie which has maintained buy with 12-month price target of Rs 640.

It said Tata Motors is the top pick in Indian Auto sector and is also a Macquarie Marquee recommended stock, citing strong JLR sales in the US.

JLR’s strong sales growth in the UK, Europe and US has been offset by a 34 percent decline in sales in China since April. Macquarie expects JLR’s sales in China to improve from October.

“Jaguar XE has started retailing in China from September and the new Jaguar XF has also started retailing globally. Local production of Discovery Sport in China will commence in October with retailing to start in November. Retail sales of Evoque in China have improved from 1,000 units in June to 2,500 in August after corrective steps taken by the company,” it reasons.

According to Nomura, overall numbers were ahead of its expectations. It said JLR’s incentives declined 17 percent year-on-year (on an adverse base) and 8 percent month-on-month, while for other luxury OEMs, incentive levels inched up by 11 percent/27 percent year-on-year for BMW/Mercedes. However, in case of Audi, incentives declined 1 percent Y-o-Y.

Meanwhile, the country’s largest commercial vehicle maker said MHCV sales continued to grow at 15,915 vehicles, higher by 52 percent over September 2014.

However, light & small commercial vehicle sales continued to reflect industry decline. LSCV sales dropped 29 percent to 13,124 vehicles compared to year-ago period, which impacted overall commercial vehicles sales of the company in domestic market. Commercial vehicle sales were flat at 29,039 units in September 2015.

Sales of passenger and commercial vehicles (including exports) were lower by 2 percent year-on-year at 45,215 units in the month gone by.

Tata Motors said passenger vehicles sales slipped marginally to 11,774 units compared to 11,931 units during the same period, impacted by utility vehicles sales.

The company sold 10,226 passenger cars in September, higher by 5 percent compared to 9,766 units in September 2014 while utility vehicles sales declined by 28 percent to 1,548 units during the same period.

Exports dropped 16 percent to 4,402 units in September.