Tata Motors' Jaguar Land Rover Unit Weighs On Otherwise Upbeat India Sales Outlook
Tata Motors saw 25-30% booking growth from Sept. 5 till Navratri, compared to the industry average of 20%.
The demand outlook for Jaguar Land Rover remains challenging in the near term for Europe, China and US regions, while domestic passenger vehicle sales may improve after GST cuts, according to Tata Motors Ltd.
Following a cyberattack that led to a widespread production pause, JLR will restart manufacturing operations in a phased manner, the management told analysts at a meeting on Monday.
The UK-based luxury car brand suffered a massive cyberattack on Aug. 31, which disrupted most of its major operations. The attack hit JLR's database, which had crucial orders and inventory systems, bringing the company's production operations to a standstill.
Domestic Outlook
For the India passenger and commercial business, the management said the reduction in GST rates will aid a better growth outlook of high single digits in the second half of the current financial year. After sales being flat in the first half, the management expects 7-8% growth in PVs in the second half and sub-5% for the whole year.
Tata Motors saw 25-30% booking growth from Sept. 5 till Navratri, compared to the industry average of 20%. The October-December quarter will see higher discounts to push volumes.
Moreover, the management expects double-digit CV industry growth in the second half. They also upgraded the FY25-30 CV industry CAGR outlook to 6-8% from 5-7% earlier.
Tata Motors' acquisition of Italian commercial automaker Iveco Group will be EPS accretive initially and should become meaningfully accretive in two years. EPS accretive means an acquisition or investment helps a company's earnings per share or profitability.
India's leading automaker announced in July the deal to acquire Iveco Group, excluding its defence business, for 3.8 billion euros (nearly Rs 38,240 crore) in a deal which is set to be its single-biggest buyout.
The company is looking to raise about one billion euros (nearly Rs 10,000 crore) through equity in the next 12-18 months as part of its plans to term out the 3.8 billion euro bridge financing facility.
