- Stock was the best performer on the 30-member benchmark Sensex
- Jaguar XE, Discovery Sport September deliveries show demand
Tata Motors Ltd. surged the most in more than two years on expectations new model introductions by its luxury unit Jaguar Land Rover will spur sales.
The shares soared 8.2 percent to 381.30 rupees at the close in Mumbai, the steepest gain since September 2013. The performance was the best among the 30 stocks on the benchmark S&P BSE Sensex.
Jaguar Land Rover’s “volume trends” are expected to improve in the second half of the current fiscal year with introduction of new models such as the Jaguar XE and Discovery Sport, Ashvin Shetty and Ritu Modi, analysts at Ambit Capital, wrote in a note Thursday. Robust demand in the U.S., Europe and the U.K. could help the luxury unit post sales of more than 500,000 vehicles in the 12 months through March, they wrote.
Jaguar deliveries rose 22 percent to 10,394 units in September, following the introduction of the Jaguar XE sports saloon in May. The model went on sale in China last month.
The luxury unit’s sales in China declined 32 percent in the quarter through September, amid weak economic growth. Tata Motors fell to more than a two-year low on Sept. 28, and has since rebounded 34 percent.