Tata Motors: JLR provides leg
Shares of Tata Motors rallied 5% on Tuesday after its UK based luxury car arm Jaguar Land Rover (JLR) witnessed 50% jump in September car sales to 1,13,569 units up sequentially over 74,067 units in the June quarter. Sales, however, were down 11.9% over 1,13,569 units in the same quarter last year.
The auto makers sales in China were particularly encouraging during the period under review, up 14.6% over the previous quarter and 3.7% on a year-on-year basis.
Retail sales in other regions, including the UK, Europe, North America and other markets, also significantly improved from the prior quarter. However, sales in these regions have not yet recovered to the levels a year ago.
Covid-19 and second lockdowns continue to impact the global auto industry, but the auto makers is witnessing recovering in sales across various markets. In China, the first region to come out of lockdown, JLR’s performance has been particularly encouraging. The recovery has been demand-led and the company has been able to reduce stocks to achieve ideal levels in most markets, despite the ongoing pandemic, to support a healthier and more profitable business.
Almost all of its retailers worldwide are now open or partially open and the plants have resumed production with robust protocol and guidelines in place.
The vehicle manufacturing plants at Solihull (UK), Halewood (UK) and Nitra (Slovakia), as well as the Engine Manufacturing Centre (UK), have now increased to a two-shift pattern to meet increasing demand.
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