JLR Sales Up 12.32% In May 2013

Jaguar Land Rover (JLR) posted robust sales volume numbers for yet another month. It registered 12.32% growth in volumes in May 2013, over the corresponding period in the previous year. It has been consistently performing well thanks to the success of some of its newly launched models and strong consumer demand from emerging geographies. This trend continued in May 2013 as well.

The sales of Jaguar XF and XJ grew by 32.32% and 10.29% respectively. The Range Rover Evoque kept its momentum and sold 9882 vehicles, clocking volumes of almost a third of the total JLR sales. Over May 2012, its sales grew by 7.37%. The Land Rover Defender and Freelander to showed strong performance with sales volume growth of 9.63% and 14.30% respectively.

In terms of geographies, China continued to remain extremely robust and grabbed a large share of the total sales of JLR. In May 2013, it contributed to 22% of the total sales. Sales volumes in China grew by 10.84% over May 2012. Consistency was witnessed in JLR’s geographical performance. Sales in North America, Europe and ‘All Other Markets’ grew by 10.31%, 15.68% and 16.10% respectively. While UK grew by 2%, Asia Pacific grew by 42% over the previous year.

JLR’s performance has been extremely robust for FY13. Its sales volumes grew by 22.50% over FY12. This growth has been propelled by low cost models like the Jaguar XF, Freelander and Range Rover Evoque. Together these models contributed to 31.18% of total volumes in May 2011. In May 2013, they together contributed to 52.77% of total volumes. Moreover, sales in emerging geographies like China have grown in copious amounts. Compared to May 2011, sales in China have grown by 89.94%.

The success of new models and demand from emerging geographies is likely to continue driving JLR to new heights. We are bullish on the sales of JLR and hence on the performance of Tata Motors in the long term. JLR contributes to more than 75% of Tata Motor’s consolidated revenues and more than 100% of its profits. JLR has been able to help Tata Motors outperform although the situation of Tata Motors domestically is bad enough to have volumes cut to two-thirds as compared to the previous year.