Tata Motors slips 2% on JLR Feb sales fall; Nomura bullish

Nomura is not much concerned about the disappointment as underlying demand for the company‘s products remains strong. The brokerage reiterates a buy rating. Nomura states that low sales volume may be possibly be due to lower despatches to China for the Evoque model to clear inventory.

March 18, 2015 / 14:46 IST

26 Aug, 2025 12:21

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Shares of Tata Motors slipped 2 percent intraday on Wednesday as Jaguar Land Rover’s (JLR) February 2015 wholesale volumes fell 1 percent year-on-year. The auto major sold 38,541 units of JLR in the month. Jaguar volumes declined by 3 percennt to 6,448 units while Land Rover volumes were down 1 percent to 32,093 units.

However, Nomura is not much concerned about the disappointment as underlying demand for the company’s products remains strong. The brokerage reiterates a buy rating. Nomura states that low sales volume may be possibly be due to lower despatches to China for the Evoque model to clear inventory as the company starts local production and gradual production ramp-up for new models like the Jaguar XE and Discovery Sport.

Nomura feels decline in China Jaguar volumes over the past few months is disappointing. Volumes in China declined 20 percent Y-o-Y. According to it, the decline in China volumes could possibly be due to “a shift in the Chinese New Year (in Feb in CY15 vs Jan in CY14) and run down of inventory of the imported Evoque model ahead of the start of local production.”

Meanwhile, Tata Motors’ overall volumes declined 6 percent Y-o-Y to 28,689 units. Volumes in North America and the UK markets were up by 11 percent and 14 percent, respectively. Europe volumes rose 2 percent.