Tata Motors Car Sales Breakdown And Growth Rates

Tata Telcoline pickup. Flickr Image.

Tata Motors Group is a global leading automobile company based in Mumbai, India.

The company wholly owns Tata Motors Limited (TML) and Jaguar Land Rover (JLR).

Aside from these major subsidiaries, Tata Motors Group also partially owns Tata Motors Finance, Tata Daewood and Tata Technologies Limited.

Tata Motors Group is a publicly-listed company on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).

In addition to a domestic listing in India, Tata Motors Group also has international listings which include the listing on the NYSE under the ticker TTM and Luxembourg Stock Exchange under the ticker TTMT LX.

All told, this article presents the vehicle wholesales figures of Tata Motors Group which includes the breakdown by segment and by vehicle category.

Additionally, we will also briefly mention the growth rates of Tata Motors’ vehicle wholesale volume.

Keep in mind that the vehicle wholesales figure is vastly different from that of the retail sales.

Also, the wholesale figures presented in this article are on a consolidated basis, meaning that they include the vehicle sales numbers of all the firm’s subsidiaries.

Let’s go take a look!

Global Vehicle Sales Volume

Tata Motors’ global vehicle wholesale volume

On a global basis, Tata Motors Group’s vehicle sales exceeded 1 million units in 1Q FY22 and soared even higher in 2Q FY22 to nearly 1.1 million units.

Prior to FY22, Tata Motors Group’s global vehicle wholesales dipped significantly below the 1 million level to only 800,000 units in 2Q FY11, driven primarily by the COVID-19 disruptions.

However, the company’s vehicle sales volume slowly recovered going into FY22 and has far surpassed the 1 million vehicles threshold as of 2Q FY22, representing a year-on-year increase of more than 30%.

The vehicle sales figures reported in FY22 had already normalized to the pre-COVID level and even exceeded that reported in 4Q FY20.

Keep in mind that the vehicle sales figures presented in the above chart include the vehicle deliveries from Tata Motors Limited and Jaguar Land Rover.

In the latest quarter, Jaguar Land Rover’s vehicle sales volume totaled more than 430,000 units, making up as much as 40% of the total vehicle wholesales.

The rest of the portion was mainly contributed by Tata Motors Limited at nearly 60% of the total vehicle deliveries.

Nonetheless, Tata Motors Group’s global vehicle sales have been on a tear and are on track to rise further going into FY23.

Breakdown Of Global Vehicle Sales By Segment

Tata Motors’ vehicle wholesale by segment

When we break the numbers down by segment or by subsidiary as shown in the chart above, Tata Motors Limited looks to overtake Jaguar Land Rover in terms of vehicle sales volume.

As of 2Q FY22, TML delivered more than 635,000 vehicles compared to only 431,000 vehicles for JLR on a TTM basis.

Also, we can see that TML’s vehicle wholesales have been on a rise and have surpassed that of JLR in FY21.

In contrast, JLR’s vehicle wholesale seems to have remained flat and the figure reported in 2Q FY22 was down nearly 20% compared to that of 4Q FY20.

On average, TML’s vehicle volumes grew more than 40% in the last 3 quarters whereas JLR’s vehicle volumes declined nearly 10% in the last 3 quarters.

In short, TML’s vehicle wholesales grew at a much faster rate than that of JLR.

Breakdown Of Global Vehicle Sales By Segment Expressed In Percentage

Tata Motors’ vehicle wholesale by segment in percentage

In terms of percentage, Tata Motors Limited (TML) figures have been rising and reached as much as 59% as of 2Q FY22.

On the other hand, Jaguar Land Rover (JLR) figures have been declining and dipped to only 40% as of 2Q FY22.

JLR’s vehicle wholesale volumes used to have a much higher percentage, notably at more than 50% back in FY20 and FY21 but this figure has been decreasing over the years.

In FY22, TML’s vehicle wholesale volumes have surpassed that of JLR and contributed a much higher portion of vehicle sales to the company.

It’s not a surprise to see TML overtaking JLR in terms of vehicle volumes because TML is targeting primarily the domestic market of India compared to JLR which targets mainly the European market.

Moreover, TML also delivers commercial vehicles while JLR delivers only passenger vehicles.

Breakdown Of Global Vehicle Sales By Vehicle Type

Tata Motors’ vehicle wholesale by type

When we break down the vehicle wholesale volume by vehicle type, Tata Motors delivers a much higher passenger vehicle volume compared to commercial vehicles.

As seen in the chart above, Tata Motors delivered 733,000 passenger vehicles in 2Q FY22 compared to only 341,000 commercial vehicles reported in the same quarter.

Therefore, Tata Motors’ passenger vehicle volume is more than twice the volume of commercial vehicles in the latest quarter.

Despite the much higher passenger vehicle volume, this segment is still rising and the figure reported in 2Q FY22 has even exceeded that of the pre-COVID level, indicating that demand for Tata Motors’ passenger vehicles is set to soar in the future.

While commercial vehicle volume is significantly lower than that of passenger vehicles, it is also rising but at a much slower rate than passenger vehicle volume as seen in the chart above.

As seen, Tata Motors’ commercial vehicle volume of 341,000 units reported in 2Q FY22 was lower than that of the pre-COVID level which was reported at 349,000 units.

Therefore, Tata Motors’ commercial vehicle volume has recovered at a slower pace than passenger vehicle volume.

Breakdown Of Global Vehicle Sales By Vehicle Type Expressed In Percentage

Tata Motors’ vehicle wholesale by type in percentage

In terms of percentage, Tata Motors’ passenger vehicle segment reaches 70% and has remained at this level for the last several quarters.

However, this figure has declined slightly to 68% in 2Q FY22.

On the other hand, Tata Motors’ commercial vehicle segment makes up 30% of the company’s total wholesale volume.

This figure has risen slightly to nearly 32% in 2Q FY22, indicating that commercial vehicle volume has expanded significantly in recent quarters in FY22.

In the post-COVID age, commercial vehicles such as medium and heavy trucks may have gained a significant market share due to the rising demand for transportation, including construction and goods delivery.

Conclusion

Tata Motors Group’s global vehicle wholesale has exceeded 1 million units on a TTM basis in FY22, far higher than that of the pre-COVID level.

Looking at the breakdown by segment, Tata Motors Limited delivered a far higher vehicle volume, reportedly at 636,000 units in 2Q FY22 and about 50% higher than that of Jaguar Land Rover.

As of 2Q FY22, Tata Motors Limited’s vehicle wholesale has achieved 60% of the total volume and this percentage is still rising year-over-year.

In terms of vehicle type, Tata Motors Group delivered 733,000 passenger vehicles and 341,000 commercial vehicles in 2Q FY22 on a TTM basis.

Both types of vehicle volumes are still rising but passenger vehicles wholesale volume is rising at a much faster rate.

On a percentage basis, Tata Motors’ passenger vehicle share reaches 68% of the total volume as of 2Q FY22 compared to only 32% for commercial vehicles.

Credits And References

1. All financial data in this article was obtained and referenced from Tata Motors’ financial statements available in Tata’s Investor Relation.

2. Featured images in this article are used under creative commons licenses and sourced from the following websites: Jaguar’s logo and Tata Telcoline.

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Disclosure

The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.

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