If the sales performance of Tata Motors in March month is anything to go by, the company could report a strong show in the March’16 quarter. The company ended FY16 on a high with both its domestic and international operations reporting robust double-digit growth. While its UK-based subsidiary, JLR has reported record March volumes, truck sales in the domestic operations too have been robust. JLR’s volumes grew 29 per cent year-on-year, with China sales up 43 per cent (about half of it came from the China JV).
Analysts at Kotak Institutional Equities expect volume growth in China to remain strong led by low base effect, ramp up in local production of Discovery Sport and the launch of the new Discovery Sport. Once JLR’s highest volume contributor, China’s monthly volumes had come down sharply due to slowdown, higher costs and the setting up of the local manufacturing unit. Monthly China sales at 10,288 units are now the fourth largest after UK, Europe and the US.