Monthly Update | March 2013

April 12, 2013

Tata Motors
Jaguar Land Rover Monthly sales update
Exhibit 1: JLR - wholesale volumes
Mar-13 Jaguar Land Rover Total Mar-12 chg (%) Feb-13 chg (%) FY2013 FY2012 chg (%)

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Automobile 87,854 15,773 1.6 337/203 1,307,656 2 18,243 5,529 TAMO.BO TTMT@IN

`275 `324
12 Months

7,621

5,343

42.6

7,102

7.3 23.5 20.3

57,812 314,250 372,062

54,034 260,394 314,428

7.0 20.7 18.3

35,061 31,128 42,682 36,471

12.6 28,383 17.0 35,485

Source: Company, Angel Research

Jaguar and Land Rover (JLR) posted record sales in March 2013 at 42,682 units (an impressive growth of 17% yoy), beating our expectations of 37,500 units. The growth was broad based, driven by strong traction in the recently introduced models and aided by continued momentum in China. Both Jaguar and Land Rover recorded highest ever monthly sales during the month.

Jaguar posted a robust 42.6% yoy growth, driven by the model year 2013 products - XF Sportbrake, XF AWD and smaller engine variants of XF and XJ.

Land Rover too registered a strong growth of 12.6% yoy, led by easing of supply constraints on Evoque and Freelander and dispatches of the new Range Rover.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 34.7 11.9 46.1 7.3

Exhibit 2: Global peers wholesale volumes

Mar-13 BMW Audi Mar-12 chg (%) Feb-13 chg (%) FY2013 FY2012 chg (%)

159,195 153,004 147,700 143,400

4.0 114,908 3.0 110,000 6.5 90,083

38.5 1,565,261 1,415,727 34.3 1,478,350 1,336,200 55.3 1,331,115 1,293,828

10.6 10.6 2.9

Abs. (%) Sensex Tata Motors

3m (7.2) (16.6)

1yr 5.3 (3.5)

3yr 2.2 75.9

Mercedes 139,920 131,334 Source: Company, Angel Research

The global luxury carmakers recorded healthy sales in March 2013, aided by strong growth in Asia and North America. BMW and Mercedes-Benz posted highest ever monthly sales during the month.

Audi registered a 3% yoy growth in volumes, led by 14.4% and 10.7% yoy growth in the US and China respectively. The volumes in Europe however registered a decline of 3.2% yoy. The company stated that the demand for its mid-sized model lines A4, A5 and Q5 continues to remain strong.

BMW posted record volumes in March 2013, aided by 11.2% and 5.3% yoy growth in the US and China respectively. The volumes in Europe though declined by 1.5% yoy.

Mercedes-Benz reported a healthy growth of 6.5% yoy, driven by 10.5% yoy growth in Asia. The growth was aided by the compact and utility vehicle segments.

Yaresh Kothari
+91 22 39357800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

Tata Motors | March 2013

Exhibit 3: Retail volumes - JLR

Mar-13 Mar-12 chg (%) Feb-13 chg (%) FY2013 FY2012 chg (%)

Jaguar Total

9,856

7,710

27.8

4,595

114.5 97.3 100.2

58,626 316,043 374,669

54,227 251,632 305,859

8.1 25.6 22.5

Land Rover 43,916 38,494 53,772 46,204

Source: Company, Angel Research

14.1 22,260 16.4 26,855

JLR registered a strong retail volume growth of 16.4% yoy to 53,772 units in March 2013, driven by continued demand in the key markets, particularly China and the UK, which registered a robust growth of 25.5% yoy and 13.7% yoy, respectively. Europe too registered a healthy growth of 11.2% yoy, despite the region facing a challenging macroeconomic environment. On the back of the strong momentum in the recently introduced models, Jaguar and Land Rover witnessed a strong growth in retail volumes of 27.8% and 14.1% yoy, respectively. Total retail volumes ex-Evoque too posted a robust growth of 14.4% yoy driven by easing of supply constraints on the Freelander model (45.9% yoy growth) and due to dispatches of the new Range Rover, XF Sportbrake and smaller engine and AWD variants of the XF and XJ. Jaguars retail sales grew strongly on the back of growth in the XF model (41.9% yoy) following the successful introduction of the Sportbrake, AWD and smaller engine variants. Sales were up in all the major markets with China, Europe and the UK, witnessing a growth of 102.3%, 31.1% and 21.2% yoy, respectively. Land Rovers retail sales were driven primarily by the Evoque, Freelander and the new Range Rover. The Evoque and Freelander models continue to benefit from easing of capacity constraints, which led to a 21.5% and 45.9% yoy growth in their sales, respectively. The new Range Rover too posted a strong growth in retail volumes of 61.2% mom. Geographically, China and the UK were the major growth drivers, with volumes witnessing a growth of 15.4% and 11.9% yoy, respectively.

Exhibit 4: Jaguar retail sales by car-type

Mar-13 Mar-12 chg (%) Feb-13 chg (%) FY2013 FY2012 chg (%)

XF New XJ XK F type Total Jaguar

7,284 2,050 506 16 9,856

5,132 1,969 609 7,710

41.9 4.1 (16.9) 27.8

2,959 1,287 253 96 4,595

146.2 59.3 100.0 114.5

38,634 16,000 3,880 112 58,626

33,466 15,788 4,973 54,227

15.4 1.3 (22.0) 8.1

Source: Company, Angel Research

April 12, 2013

Tata Motors | March 2013

Exhibit 5: Land Rover retail sales by car-type

Mar-13 Mar-12 Defender Discovery Freelander Range Rover Range Rover Evoque Range Rover Sport New Range Rover Total Land Rover chg (%) Feb-13 chg (%) FY2013 FY2012 chg (%)

2,346 5,551 8,621 173

2,648 6,420 5,910 4,072

(11.4) (13.5) 45.9 (95.8) 21.5 (4.8)

1,176 2,728 3,284 122 7,959 3,663 3,328

99.5 103.5 162.5 41.8

16,199 45,126 53,660 17,941

19,736 46,316 46,889 30,466 51,881 56,344 0

(17.9) (2.6) 14.4 (41.1) 118.6 0.4

15,452 12,715 6,407 5,366 43,916 38,494 6,729

94.1 113,416 74.9 56,562 13,139

14.1 22,260

97.3 316,043 251,632

25.6

Source: Company, Angel Research

Exhibit 6: Jaguar monthly retail sales trend by car-type

(units) 12,000 10,000 8,000 6,000 4,000 2,000 0

Exhibit 7: Land Rover monthly retail sales trend by car-type

(units) 50,000 40,000 30,000 20,000 10,000 0

Dec-12

Jun-12

Aug-12

Jan-13

Mar-12

Nov-12

Dec-12

Jun-12

Aug-12

Jan-13

Mar-12

May-12

Nov-12

Mar-13

Apr-12

Sep-12

Feb-13

Oct-12

XF

New XJ

XK

F type

Defender Range Rover Evoque

May-12

Jul-12

Discovery Range Rover Sport

Freelander New Range Rover

Range Rover

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 8: JLR retail sales region wise

Mar-13 Mar-12 chg (%) Feb-13 chg (%) FY2013 FY2012 chg (%)

Asia Pacific China Region Europe North America UK Rest of the world

1,945 1,882 8,487 6,760 10,366 9,322 6,453 6,062 17,784 15,645 8,737 6,533

3.3 25.5 11.2 6.5 13.7 33.7

1,658 4,808 7,724 5,546 5,613

17.3 76.5 34.2 16.4 55.7

17,849 77,075 81,027 62,959 72,270 63,489

13,283 51,323 68,420 58,003 60,022 54,808

34.4 50.2 18.4 8.5 20.4 15.8

1,506 1,080.9

Source: Company, Angel Research

April 12, 2013

Mar-13

Apr-12

Oct-12

Sep-12

Feb-13

Jul-12

Tata Motors | March 2013

Exhibit 9: JLR retail sales-mix by region

(%) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0

14.1 33.9 13.1 20.2 14.6

17.5 14.7 18.9 22.6 21.8

16.2 18.8 17.1 21.3 22.2

17.8 16.9 16.0 23.8 20.7

17.3 17.9 18.0 21.2 20.7

22.0 3.9 23.5 18.9 25.9

14.3

17.0 18.2 16.7

15.5 17.6 16.2 22.8 23.0

17.9 12.3 19.9 20.7 24.4

14.2 18.4 16.1 21.6 24.2

20.9 5.6 20.7

16.2

34.2 13.6 17.3 16.6

33.1 12.0 19.3

24.6 18.5

28.8 17.9

15.8

Oct-12

Sep-12

May-12

Nov-12

Dec-12

Mar-12

Aug-12

Feb-13

Jun-12

Apr-12

Jan-13

Jul-12

Asia Pacific

China Region

Europe

North America

UK

Rest of the world

Source: Company, Angel Research

Outlook and valuation: We retain our positive view on JLR and expect an
~12% volume CAGR over FY2013-15, driven by Evoque and the new launches (Range Rover, Range Rover Sport, Jaguar XF Sportbrake and AWD and smaller engine variants of XF and XJ models). Further, a favorable market and product-mix and stable commodity prices will help mitigate raw-material cost pressures. We maintain our Buy rating on Tata Motors with a sum-of-the-parts (SOTP) target price of `324.

April 12, 2013

Mar-13

Tata Motors | March 2013

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

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Tata Motors No No No No

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Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

April 12, 2013

Tata Motors | March 2013

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April 12, 2013