Tata Motors reports poor JLR numbers amid weak China market

Automobile major Tata Motors witnessed a decline of about 3.5 per cent on the bourses on Monday as its wholly-owned subsidiary Jaguar Land Rover (JLR) reported of a decline of 5.8 per cent in sales for FY19. Total vehicle sold during FY19 stood at 5,78,915. During March 2019, the sales declined by 8.2 per cent.

During the year, the all-electric Jaguar I-PACE was introduced and sales of the Jaguar E-PACE, Range Rover Velar and the refreshed Range Rover and Range Rover Sport ramped up. However, this was offset by continuing weakness in China.

In North America, retail sales increased by 8.1 per cent. In volume terms, volumes in UK increased by 8.4 per cent and in the overseas markets, it increased by 2.4 per cent. But due to weaker sales in China, overall volumes impacted by 34.1 per cent. In Europe, sales were declined by 4.5 per cent on account of diesel uncertainty.

Jaguar retail sales in FY19 increased by 3.2 per cent to 1,80,198 vehicles, whereas Land Rover sales declined by 9.3 per cent in FY19 to 3,98,717 vehicles.

JLR, which is a wholly-owned subsidiary of Tata Motors, contributes more than 70 per cent to the parent company's revenues. Recently, the company has come up with the guidance that Jaguar Land Rover (JLR) sales is expected to increase in Q4FY19 but this has not happened.

Reacting to the poor sales data, the stock of Tata Motors slips 3.5 per cent and made an intraday low of Rs. 198.50 on the BSE.