Record U.S. Land Rover Sales Fuel Tata Motors Stock Rallyby
Jaguar Land Rover U.S. deliveries rose 61% in September
Company expects boost from new Jaguar model introductions
Tata Motors Ltd. climbed the most in almost six weeks in Mumbai trading after sales of its Jaguar Land Rover U.S. unit surged 61 percent in September, paced by record demand for sport utility vehicles.
Shares of Tata Motors surged 5.8 percent to 315.15 rupees, the most since Aug. 25. The stock was the biggest gainer on the benchmark S&P BSE Sensex, which rose 2.2 percent.
Demand for Range Rover and Evoque SUVs carried the Land Rover brand to its best September ever for U.S. deliveries and a record for sales though the first nine months. Jaguar sales will get a boost from the introduction of the new XF sedan this year and upgrades of other models in 2016, according to Joe Eberhardt, Jaguar Land Rover’s chief executive officer for North America. The results are helping offset declining deliveries in China.
“The large increase in the U.S. shows that other markets could make up for a decline in China, and that is positive news,” said Bharat Gianani, analyst at Angel Broking in Mumbai. “China accounts for a large volume of JLR’s sales and is clearly slowing.”
Jaguar Land Rover U.S. sales increased to 6,850 units last month. Deliveries rose 19 percent to 59,619 units in the nine months through September, according to the company. Land Rover sales rose 26 percent to a record 48,403 units in the period, while Jaguar deliveries declined 5 percent to 11,216 units.
Auto sales in the U.S. last month accelerated more than expected aided by cheap credit, good deals and relatively low gasoline prices. Industry analysts at LMC Automotive and TrueCar Inc. raised their full-year sales forecasts, with both projecting industrywide deliveries exceeding 17 million cars and light trucks.