>TATA MOTORS: May'10 JLR unit sales growth (+73% yoy) momentum sustains - ALERT

• Jaguar Land Rover sales growth momentum sustains: Land Rover sales at 13,933 units (+93% yoy) have sustained the YTD growth trend (+91% YTD). Jaguar sales grew for the first time in several months at 5,120 units (+34% yoy).

• Land Rover sales continue to benefit from strong demand in its key UK market, besides healthy industry growth in USA and China.

• Jaguar sales growth aided by the dispatch of the new ‘XJ’: Jaguar has commenced dispatches of its recently launched luxury sedan. Management has highlighted that there is a healthy order book for the new model.

• Global luxury car sales growth is healthy: The growth trend in luxury car sales continued with Mercedes (+18% y/y) & BMW (+12% y/y) reporting healthy sales growth, driven by strong sales in the US and China. Strong US luxury car sales (+35% y/y) offset the weak sales in Western Europe.

• We expect the sales growth at JLR to likely remain encouraging over the near term given a low base: While there are concerns of a potential slowdown in Europe, data indicates that sentiment is currently holding with private demand remaining steady.

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