- 10 Oct 2022
- ICICIdirect Research
Tata Motors reports muted JLR dispatches
TATAMOTORS - 1111 Change: -10.30 (-0.92 %)News:
In a regulatory exchange filing, Tata Motors informed exchanges about retail sales at JLR for Q2FY23 at 88,121, up 12% QoQ (driven by an uptick in China, North America and RoW markets). Wholesale sales were at 75,307 units (excluding China JV) up 4% QoQ.
View:
Wholesale dispatches come as a negative surprise to us and were significantly lower than the commentary issued by Tata Motors setting 90,000 wholesales target during Q1FY23 call. The company cited chip constraints limiting execution capabilities on the JLR front but new agreements with semiconductor suppliers are expected to enable sales improvement in the second half of the fiscal year. Encouragingly, however, the company is witnessing healthy demand for its products with the order book increasing to ~2.05 lakh units vs. ~2 lakh units as of Q1FY23.
Impact:
Negative.