Tuesday, 9 October 2018

Tata Motors stock hits nearly 7-year low as lower China demand hits JLR September sales

JLR's sales in China declined by 46.2 percent during September as compared to the same month last year.

Tata Motors share price corrected sharply on Tuesday, hitting nearly 7-year low on consistently weak performance from its luxury car brand Jaguar Land Rover.

The stock went down almost near Rs 200 levels at Rs 200.80, the lowest level since January 11, 2012, falling 5.6 percent intraday. At 09:34 hours IST, the stock price was quoting at Rs 204.10, down Rs 8.65, or 4.07 percent on the BSE.
The stock plunged more than 50 percent in last one year.
JLR on Monday reported total retail sales of 57,114 vehicles in September 2018, down 12.3 percent year-on-year, hit by lower demand in China, the company said.
The company's sales in China declined by 46.2 percent during September as compared to the same month last year as ongoing market uncertainty resulting from import duty changes and continued trade tensions held back consumer demand.
Sales of Jaguar brand of vehicles in September were at 19,146 units, an increase of 4.4 percent over September 2017, but Land Rover posted sales of 37,968 units in the month, down 18.8 percent, the company said.
"As a business we are continuing to experience challenging conditions in some of our key markets," JLR Chief Commercial Officer Felix Brautigam said.
Customer demand in China has struggled to recover following changes in import tariffs in July and intensifying competition on price, while ongoing global negotiations on potential trade agreements have dampened purchase considerations, he added.
In North America, Jaguar Land Rover sales were 6.9 percent lower. "It was largely reflecting lower industry sales (down 5.5 percent) and reduced incentives on Jaguar sedans, although Land Rover had a record September with sales up 7.3 percent," the company said.
JLR sales fell 0.8 percent in the UK and 4.7 percent in Europe, which saw large industry declines of 20.5 percent in the UK and 31 percent in Germany primarily relating to the timing of new WLTP homologation rules as well as reduced diesel demand, it added.
However, JLR said strong sales of new models including the electric Jaguar I-PACE, the Jaguar E-PACE compact SUV, and the Range Rover Velar helped offset slower sales of older models, such as the Range Rover Evoque and the Land Rover Discovery Sport.

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