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Tata Motors rallies 8% as retail sales in China continue to recover
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Tata Motors rallies 8% as retail sales in China continue to recover
Sep 11, 2019 5:41 AM

Shares of Tata Motors rose over 8 percent on Wednesday after the company said that its retail sales in China continued to recover, up 17.4 percent year-on-year in August.

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The stock rose as much as 8.2 percent to Rs 131.90 per share on the BSE. At 1:35 pm, the stock was trading 7.8 percent higher at Rs 130.90 as compared to 0.34 percent or 126 points rise in the BSE Sensex at 37,271.

The company said the demand for the all-new Range Rover Evoque continued to strengthen (up 50.9 percent year-on-year) with sales just beginning in China, and sales of the Range Rover Sport increased by 6.4 percent. The Jaguar XJ saw an increase of 31.1 percent and sales of the all-electric Jaguar I-PACE also increased.

However, sales of other models were down year-on-year, including Land Rover Discovery Sport which reflects the run out of the prior model with the refreshed model ramping up. Jaguar retail sales in August 2019 were 9,702 vehicles, down 17.8 percent year-on-year and Land Rover retailed 24,474 vehicles, down 1.4 percent compared to August 2018.

"While the global market remains challenging, we have seen a second month of consecutive growth in China and are confident that we have the right strategy in place to support long-term sustainable growth," said Felix Brautigam, Jaguar Land Rover chief commercial officer.

The press filing also noted that UK sales were solid but down 21.6 percent compared to August 2018, which was boosted by WLTP certification timing factors. Other markets were also down including Europe (1.4 percent) and North America (9 percent, impacted by new engine introduction timing issues this month), and overseas (24.7 percent, primarily softer sales in Korea and MENA).

Also, track all live market action on CNBC-TV18 Market Blog

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions

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