Tata Motors’ global vehicle sales growth in April was flat from a year earlier mostly because strong demand for Jaguar Land Rover vehicles helped offset weak sales at parent Tata Motors’ commercial vehicles unit.
Tata, part of the salt-to-steel Tata Group conglomerate, sold 87,377 vehicles in April. Overall passenger cars sales were 49,369 vehicles, a rise of 7 percent from a year previously. Commercial vehicles sales were down by 8 percent to 38,008 units from the same month last year.
JLR sales have done well in emerging markets including China but US sales disappointed as retail volumes rose only 3 per cent year-on-year. Wholesale volumes in China grew by 150 per cent annually, comprising 25 per cent of sales.
“The expectations on Tata Motors are running very high in terms of volume growth. So JLR will continue to do well. I don’t think we will see negative growth from JLR.
But regarding what the stock was expecting in terms of the PE multiple seems a bit high. We have a sell rating on Tata Motors,” Gautam Chhaocharia, Head of India Small/Mid-cap Research, UBS, said.
At 14:15 pm, Tata Motors’ stock was trading at Rs 268.85, down 7.39% on the BSE.