Tata Motors Global Sales Up 5% in Q1, Boosted by 30% Surge in JLR Volume
Tata Motors, one of the leading automakers in India and the world, has reported a 5 percent increase in its global sales number, including Jaguar Land Rover (JLR), in the first quarter of the financial year 2024. The company sold 3,22,159 vehicles globally in Q1, compared to 3,06,621 vehicles in the same quarter last year.
The growth was driven by a strong performance of its passenger vehicles segment, which saw an 8 percent rise in global wholesales to 1,40,450 units. The company’s commercial vehicles and Tata Daewoo range, however, witnessed a 15 percent decline in global wholesales to 88,456 units.
The highlight of the quarter was the impressive performance of JLR, the luxury arm of Tata Motors. JLR sold 93,253 vehicles globally in Q1, up 30 percent year-on-year. Jaguar sales were 10,324 units, while Land Rover sales were 82,929 units. JLR also had a robust order book with over 185,000 customer orders at the end of the quarter, as it overcame chip and other supply challenges. Range Rover, Range Rover Sport and Defender were the most popular models among customers, accounting for 76 percent of the order book.
JLR also expects to report positive free cash flow of over £400 million in Q1, based on preliminary cash balances. This would be a significant improvement from the negative free cash flow of £1.5 billion reported in Q4 FY23.
Tata Motors’ strong performance in Q1 has also been recognized by foreign brokerage firm Jefferies, which expects both JLR and India businesses to perform well in FY24, leading to strong earnings growth and deleveraging. “We expect EBITDA to be 2.1x of FY23 by FY25, EPS to reach an all-time high, and the auto balance sheet to turn to net cash. Our FY24-25 EBITDA and EPS are 11-12 percent and 40 percent above Street, respectively,” the firm said in a note last month.
The market also reacted positively to Tata Motors’ Q1 results, as the stock hit an all-time high level of Rs 624.80 on the NSE on July 7 and closed over 3.6 percent higher. The company also announced that it will declare its June quarter results on July 27 in another exchange filing.
Tata Motors is one of the most trusted and respected brands in the automotive industry, with a diverse portfolio of products ranging from passenger cars to commercial vehicles to luxury vehicles. The company has been investing heavily in innovation, technology and sustainability to meet the evolving needs and preferences of its customers. With its global sales growing steadily in Q1, Tata Motors is well-positioned to capture the opportunities and overcome the challenges in the post-pandemic world.
Disclaimer: This blog post is based on publicly available information and is not intended to provide any financial advice or recommendation. Please do your own research before making any investment decisions.
Keywords: Tata Motors, Q1, Global Sales, JLR, Jaguar, Land Rover, Growth