Mumbai: Tata Motors Ltd shares zoomed over 10% on Wednesday after the company’s subsidiary Jaguar Land Rover (JLR) clocked better-than-expected retail sales in China in August.
The Tata Motors stock closed the session at Rs 134.90, up 10.7%. The stock has corrected nearly 54% in the past one year.
JLR’s retail sales in China rose 17.4% year-on-year in August, backed by strong demand for the all-new Range Rover Evoque and the Range Rover Sport.
However, JLR’s total retail sales were still down 6.7% to 34,176 vehicles in in August 2019 compared with a year ago. The company sales JLR’s UK sales were solid, but down 21.6% compared to August 2018. Other markets were also down, including Europe (1.4%) and North America (9%) and overseas (24.7%).
JLR’s chief commercial officer Felix Brautigam said that while the global market remains challenging, the company has seen a second month of consecutive growth in China.
The Tata Motors stock also got a boost from Finance Minister Nirmala Sitharaman’s statement that the GST Council would decide on the cut in the goods and services tax (GST) on automobiles to fuel auto sales. To recall, Tata Motors had earlier this month reported a 58% decline in its domestic passenger vehicle sales at 7,316 units in August.
“It is something, which if taken to the council, they will have to take a call,” she said, adding that the government was working on a few initiatives in this regard, including for the automobile and its components sectors.