India’s auto giant Tata Motors Ltd. (TTM) posted an 18.4% rise in sales of wholesale vehicles to 102,411 units in February. Out of this, commercial vehicles, including Tata, Tata Daewoo and the Tata Hispano Carrocera, totaled 46,747 units, a growth of 10% from the prior year. Meanwhile, passenger vehicles totaled 55,664, up 18% from the same month in 2010.
Sales of Jaguar and Land Rover rose 26% to 21,653 units on the back of a 33% increase in sales of Land Rover models. Sales of Jaguar models slid 2% to 3,213 units while that of Land Rover models escalated 33% to 18,440 units.
Tata acquired the two U.K. brands from Ford Motor Co. (F) for $2.3 billion in 2008. The automaker expects to invest INR 73 billion ($1.60 billion) for research and product development on these brands.
Tata reported a 272.8% jump in consolidated net profit to INR 24.24 billion ($526.5 million) in the third quarter of its fiscal year ended December 31, 2010. The company’s sales increased 21.6% to INR 315.06 billion ($6.84 billion) from the same quarter in 2009. The operating profit margin grew by 270 basis points as operating profit surged 51% to INR 44.89 billion ($975 million).
The improvement in results was attributable to strong volumes of Jaguar and Land Rover, cost reduction measures, favorable currency movements and better product mix.
Tata Motors, a Zacks #3 Rank (Hold) stock, designs, develops, manufactures and sells passenger cars, light commercial vehicles, engines for industrial and marine applications; construction equipment as well as provides engineering solutions and software consultancy and services and financing for its vehicles. Its products are marketed in Africa, Australia, Europe, Middle East, Southeast Asia and south Asia.
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