Buzzing stock: Tata Motors jumps 8 per cent on positive JLR sales, recovers by 120 per cent from COVID-19 lows

On Tuesday, the shares of Tata Motors soared by nearly 8.28 per cent after the company’s wholly-owned subsidiary, Jaguar Land Rover (UK) reported strong growth in its net sales for Q2FY21.

Jaguar Land Rover (JLR) reported a significant improvement in its net sales for Q2FY21 compared to the COVID-19 affected Q1FY21 and Q4FY20. Retail sales were up by more than 50 per cent to 1,13,569 units in Q2FY21 compared to 74,067 units in Q1FY21 but compared to Q2FY20, the net sales lagged by 11.9 per cent. The boost in the net sales was led by strong growth of 14.6 per cent QoQ in the Chinese markets. Sales in China in the month of September alone were up by 28.5 per cent YoY.

It also stated that as a result of the increasing demand, the majority of Jaguar Land Rover’s retailers worldwide are now open or are partially open. The company’s plants have resumed production while vehicle manufacturing plants at Solihull (UK), Halewood (UK) and Nitra (Slovakia), and Engine Manufacturing Centre (UK), now have increased to a two-shift pattern.

Expanding its portfolio, the sales for the company’s newest launch, Land Rover Defender continued to gain pace with 4,508 units being sold in September. Additionally, to meet the growing demand for electrification, it continues to roll-out products in the respective categories.

For its compact category of cars, Tata Motors posted a 141.80 per cent growth in its domestic sales to 34,847 units in Q2FY21 compared to 14,411 units in Q2FY20 while the production for the same range of cars during Q2FY21 doubled on a YoY basis.

Though the stock is down by 22.3 per cent on a YTD basis, it recovered, gaining by more than 100 per cent from its March low.

The stock of Tata Motors was trading at Rs 144.6 per share, up by 7.99 per cent or Rs 10.7 per share. The 52-week high is Rs 201.80 and its 52-week low is Rs 63.60 on BSE.