The retail sales for JLR for the quarter ending December 31, 2021, were 80,126 vehicles, down 13.6% (12.6k units) from the preceding quarter ending September 31, 2021, and 37.6% (48.3k units) from the quarter a year ago ending December 31, 2020.
Tata Motor’s share price fell 2 percent intraday to Rs 495 on the BSE on January 13 after its wholly-owned subsidiary Jaguar Land Rover (JLR) reported weak sales numbers for the quarter ended December 2021.
The retail sales for JLR for the quarter ending December 31, 2021, were 80,126 vehicles, down 13.6% (12.6k units) from the preceding quarter ending September 31, 2021, and 37.6% (48.3k units) from the quarter a year ago ending December 31, 2020, Tata Motors said in its press release.
Retails were lower across all regions compared to the preceding quarter, including China (-6.9%), Europe (-6.8%), North America (-11.8%), UK (-24.3%), and Overseas (-25.4%), it added.
Jaguar Land Rover retail sales for the three-month period to December 31, 2021, continued to be constrained by the global semiconductor shortage, though the company started to see some improvement in chip supply and wholesale volumes compared to the preceding quarter.
The underlying demand for Jaguar Land Rover products remains strong and the company has proactively managed semiconductor supplies to maximize production of higher-margin products, the company added.
However, its wholesale volumes were 69,182 units and production volumes were 72,184 units in the period (both excluding China JV), up 8% and 41% respectively compared to the preceding quarter ending September 2021.
Compared to the preceding quarter, Range Rover wholesale volumes were up by 91.8%, Range Rover Sport by 64.0%, and I-Pace by 34.5%.
Retail sales for the calendar year 2021 were 420,856, down 1.2% compared to the calendar year 2020 with Land Rover sales up 3.4%.
The total order book has grown to over 154,000 units, up about 30,000 orders from the prior quarter for the New Range Rover, while demand for the Land Rover Defender remains strong with about 36,000 orders, the company added.
Motilal Oswal
Tata Motors’ all three businesses are in recovery mode. While the India CV business would see cyclical recovery, the domestic PV business is in a structural recovery mode.
JLR is also witnessing a cyclical recovery underpinned by a favorable product mix; however, supply-side headwinds will defer the recovery process.
While there would be no near-term catalysts from the JLR business, the India business (~50% of SOTP) would see sustained revival.