- 06 Dec 2024
- ICICI Securities
JLR RETAILS DECLINE IN UK FOR NOVEMBER 2024
News: According to media sources, Jaguar's UK sales plummeted by 53% in November 2024, totalling only 725 units, as the brand ceased new vehicle sales until 2026 to focus on a rebranding as a luxury electric car manufacturer. In contrast, Land Rover experienced a 3% increase in sales, reaching 4,833 units. Overall JLR reported an 11% year-on-year decline in its UK retail sales for November 2024, with total registrations falling to 5,558 units from 6,251 in the same period a year earlier, according to data from the Society of Motor Manufacturers and Traders (SMMT).
Views: UK as a territory has been witnessing demand concerns amid muted economic growth outlook. JLR however in its last Concall guided for robust wholesales in H2FY25 and has also retained its yearly targets on sales, margins as well as FCF generation. With stock correcting ~33% from its peak, it is now in the value zone and offers lucrative risk reward play. We have a positive view on the stock.
Impact: Neutral