Domestic Sales Boost Tata Motors’ Revenues
The driving force behind this comeback can be attributed to the strong growth in domestic passenger and commercial vehicle sales, as well as the low base effect.
In December 2022, Tata Motors recorded a 10% uptick in total domestic sales, totaling 72,997 units. This, coupled with an estimated 14.5% YoY and 3.9% sequential growth in consolidated sales, is expected to propel the company back to profitability and put it on the fast track to success.
Jaguar Land Rover’s Domestic Sales See Significant Increase
Jaguar Land Rover’s domestic sales have seen a significant boost in December 2021, with a growth of 13.4% compared to the previous year.
This uptick in sales is largely attributed to the easing of chip shortage issues, which has allowed for a steady increase in production.
According to a report by Kotak Institutional Equities, JLR’s volumes are expected to grow by 4% in the coming quarter, driven by the improvement in chip availability.
EBITDA Margin Expected to Improve for JLR
In addition to the growth in volumes, the company is also expected to see a 6% increase in revenues, mainly due to the higher mix of Range Rover vehicles.
Furthermore, experts predict that the EBITDA margin for JLR will improve to 5.2% in Q3 FY23 from 4.4% in Q2 FY23. This increase in margin is expected to be driven by the benefits of raw material cost moderation and favorable foreign exchange rates.
Investors and analysts will be closely monitoring JLR’s demand outlook in Europe and China, any updates on the acquisition of Ford’s Sanand plant, and the company’s electric vehicle sales.
Overall, the outlook for JLR looks promising, as the company continues to benefit from the easing of chip shortage issues and a steady increase in production.
