Tata Motors stock jump

Tata Motors Q1 Update: Global Wholesales Increase 2% YoY; Stock Jumps

Global wholesales of all commercial vehicles, including the Tata Daewoo range, reached 93,410 units in Q1 FY25, marking a 6% increase compared to Q1 FY24.

Tata Motors‘ global wholesales for the quarter ending June 30, 2024, reached 329,847 units, reflecting a 2% year-on-year increase, according to the company’s filing to the exchanges on Monday. However, global wholesales of passenger vehicles totaled 138,682 units, marking a 1% decrease compared to Q1 FY24.

The announcement was made during market hours, and by around 1 pm on the NSE, Tata Motors‘ stock was trading 0.5% higher at ₹681.60. By the end of Monday’s trading session, the stock closed in green at ₹1,002.90, against the previous close of ₹993.65 per share on Friday last week.

Highlights:

1. Commercial Vehicles:

1. • Global wholesales, including Tata Daewoo range: 93,410 units
   • Increase: 6% YoY

2. Passenger Vehicles:

1. • Total units: 138,682
   • Decrease: 1% YoY

3. JLR Performance:

1. • Global wholesales: 97,755 units
   • Increase: 5% YoY
   • Jaguar wholesales: 8,227 vehicles
   • Land Rover wholesales: 89,528 vehicles
   • Retail sales: 111,180 units (9% increase YoY)
   • High-value models (Range Rover, Range Rover Sport, Defender): 68% of total volumes

The company attributed JLR’s year-on-year growth to sustained demand. Notably, the wholesale volumes for JLR in the first quarter of FY25 do not include units from its Chery Jaguar Land Rover China JV. However, retail sales for Q1 included these units.

Regional Performance:

• North America: Retail sales up by 43%
• UK: Retail sales up by 14%
• Europe: Retail sales up by 4%

Context:

Despite the overall positive performance, the wholesale volumes and retail sales declined by 11% and 3%, respectively, compared to the previous quarter ending on March 31, 2024. This decline is attributed to typical cyclical fluctuations between Q4 and Q1.

Conclusion

Tata Motors demonstrated a solid performance in Q1 FY25 with an increase in global wholesales and a significant contribution from high-value JLR models. The company’s stock reflected this positive momentum, closing higher despite a cyclical dip from the previous quarter. As Tata Motors continues to navigate market dynamics, its strategic focus on high-demand models and regional performance remains crucial for sustaining growth.

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Tata Motors stock jump