Tata Motors Shares Slide 3% After JLR Q3 Results: Wholesale Up, Retail Down

Market Reaction

Tata Motors' share price fell over 3% on January 9 following Jaguar Land Rover's (JLR) mixed Q3 FY25 performance announcement. The stock opened at ₹798.95 on the BSE, slightly above its previous close of ₹794.85, before sliding to an intraday low of ₹769.66.

JLR Performance Overview

• Wholesale Sales: Despite the challenging market conditions, JLR's wholesale volumes (excluding Chery Jaguar Land Rover China JV) showed resilience, growing 3% YoY to 104,427 units in Q3 FY25. This growth reflects a commendable recovery after supply disruptions in Q2 FY25. Wholesale sales increased by 20%, demonstrating the brand's strength. Growth was notable in North America (+44%) and Europe (+6%), while declines were observed in China (-38%), the UK (-17%), and other regions (-1%).
• Year-to-date wholesale volumes stood at 289,485, down 1% compared to the past year.

Retail Sales:

JLR's retail sales, including the Chery Jaguar Land Rover China JV, fell 3% YoY to 106,334 units. However, the sequential improvement of 3% provides a ray of optimism. Year-to-date retail volumes rose by 1% to 320,622 units, indicating a steady performance.

Demand for Premium Models

The strong performance of high-margin car models—Range Rover, Defender, and Range Rover Sport—accounted for 70% of wholesale volumes. Range Rover wholesale volumes surged 48% sequentially and 22% YoY, driven by easing supply chain issues and continued robust demand. This strong demand instils confidence in the brand's future.

Additional Details

1. Weak demand in core regions.

2. Rising costs for demand generation.

3. A normalizing product mix.

4. Margin-dilutive EV ramp-up.

In India, demand moderation is occurring in both the commercial vehicle (CV) and passenger vehicle (PV) segments. Tata Motors stock has corrected by ~32% from its peak, reflecting these pressures.