JLR Sales For CY13

Tata Motor’s owned company Jaguar Land Rover (JLR), the leading British luxury premium car manufacturer posted record sales for CY13 and stood at 425006. This was 19% up from last year (CY12). Total units sold for Jaguar and Land Rover were 76,668 and 348338 units respectively for CY13. The strong sales was primarily driven by the F-TYPE, XF and XJ vehicle under Jaguar brand and Range Rover Sports models. The uptrend witnessed in the sales of Land Rover was due to the record sales in all the new Range Rover and increased sales of Range Rover and Range Rover Evoque. Also the sales of British motoring marque model, which is a premium brand in USA and Germany markets increased in the said period.

The UK based company (JLR) markets its luxury cars to over 38 countries including Brazil, Russia, UK, China, USA etc. Its overall sales from the regions like Asia Pacific and China rose by 30%, North America 21%, while UK, Europe and other overseas markets witnessed 14%, 6% and 23% growth respectively. The higher sales figures represent a major turnaround for JLR.

The company reported that to meet the growing demand of JLR, the company is also planning to hire more number of employees. In addition the company is also planning to invest on its design and manufacturing plant and its low emission engines.

However, against the JLR sales for CY13, Tata Motors reported a decline of 0.3% in its total sales for YTD FY14 and stood at 8,30171 units. The company's export sales dropped by 12% to 75,078 YTD FY14. The JLR's increased sales will help the company to show a good performance on global front, however, Tata Motors domestic sales is expected to see a slowdown in future due to the lower domestic demand and increased prices on the various range of models. 

However, the positive impact of strong global numbers is already visible in the stock price which closed at Rs 376 up by 2.15% (13 January 2014). We feel that although the company has fared on the global front, the domestic sales remain overhang for the company. Hence it would be advisable to maintain caution and do a proper due diligence before investing in the company.