Tata Motors shares gained on Wednesday after the its subsidiary Jaguar Land Rover achieved its best ever August sales results. Jaguar Land Rover (JLR) August retail sales stood at 36,926 units, up 26 per cent in comparison to the sales figures last year same month, driven by strong sales of the Land Rover Discovery Sport, the Jaguar F-PACE and XE.
At 11.40 am, Tata Motors share price was trading 0.20 per cent up at Rs 590.55. The scrip opened at Rs 590 and touched a high and low of Rs 598.60 and Rs 584.50, respectively. Later, the scrip settled 0.28 per cent down at Rs 587.70.
Tata Motors had recently said that in the long-run it expects JLR to benefit from post-Brexit weak pound. The statement came despite getting a heavy hit in the first quarter of this fiscal due to adverse foreign exchange. “We do source about 40 per cent to 50 per cent of our components from the EU. Therefore, if you take a combination of these, JLR over a time would benefit from a continued weaker pound as a result of the Brexit,” Tata Motors Group CFO C Ramakrishnan had told analysts.
In the first eight month of 2016, Jaguar Land Rover registered 24 per cent year-on-year rise in sales to 372978 vehiles till August 2016.
The company’s release on BSE said, “Jaguar Land Rover delivered particularly solid performances in North America and Europe with retail sales increasing by 45 per cent and 37 per cent respectively compared to the previous year. Retail sales were 36 per cent up in China, 3 per cent down in the UK, and 2 per cent down in other overseas markets.
Jaguar August sales stood at 10,868 vehicles, up 104% on the previous year, driven by launch of the F-PACE and solid sales of the XE.
Land Rover strengthened its position as a world-leading manufacturer of all-terrain SUVs, with its strongest August sales of 26,058 vehicles, up 9% year-on-year. The strong sales were led by the Discovery Sport, retailing 7,053 vehicles.