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On the right track
Niche presence, new launches, wider market reach to be key drivers
Under Tata Motors parentage, JLR is all set to emerge as a bigger, better and
stronger global luxury vehicle player. It is taking several initiatives to fortify its
strength in luxury SUVs and improve its weak positioning in luxury car market.
Outlook for luxury vehicles remains positive, JLR can drive secular growth.
Land Rover commands strength; Evoque to drive growth, market share
gains.
Jaguar's niche presence offers significant headroom to grow.
China a big opportunity; JLR's local presence will boost competitiveness.
Improved volumes, market mix, cost efficiencies to offset cost push.
TTMT's domestic CV business has seen reduced volatility driven by higher
LCV contribution.
Outlook for luxury vehicles positive, JLR can drive secular growth
The luxury vehicle market will post CAGR of 8.9% to 9m units over 2011-15. We
expect China and BRIKT (Brazil, Russia, India, Korea and Turkey) to be key growth
drivers with CAGR of 11.4% and 8.6% respectively. Jaguar Land Rover's (JLR) luxury
vehicle market share (~4% or 0.23m units), comprising 1.3% in luxury cars and 9.9%
in luxury SUVs, is small compared with the top three players. JLR's weakness in cars
offers headroom for growth, driven by planned launches over 2-3 years. JLR's entry in
the lower luxury segment will give it access to higher volume segments, where it has
no presence.
Land Rover commands strength; Evoque to drive growth, market share
In the global premium SUV segment, Land Rover's volumes are comparable with those
of BMW (excluding X1), Mercedes Benz and Audi. Within Land Rover brand, Range
Rover portfolio enjoys a relatively more premium image. The luxury SUV segment
registered 11.6% CAGR over CY00-10 and we expect it to post 9.7% CAGR over
CY10-15. JLR's launch of Evoque in the high volume potential compact luxury SUV
segment will be a key growth driver over 2-3 years.
Jaguar's niche offers significant headroom for growth
Land Rover competes well with the top three luxury SUV makers, but Jaguar's volumes
lag its peers. It has just three models and seems to be weak, with volumes of only
~54,000 units (1.3% market share). Jaguar's small product range and absence in the
high volume, entry-level luxury segment are major reasons for its comparatively smaller
size. We foresee strong potential for Jaguar in the entry-level luxury segment (D2), a
market of over 1.1m units a year. Jaguar can leverage its brand heritage to gain market
share in the luxury car segment. JLR's European peers sell ~1m cars in the segment
in which Jaguar is present and ~1.2m units in the compact luxury car segment, which
Jaguar plans to enter by CY14.
Visit http://indiaer.blogspot.com/ for complete details �� ��
On the right track
Niche presence, new launches, wider market reach to be key drivers
Under Tata Motors parentage, JLR is all set to emerge as a bigger, better and
stronger global luxury vehicle player. It is taking several initiatives to fortify its
strength in luxury SUVs and improve its weak positioning in luxury car market.
Outlook for luxury vehicles remains positive, JLR can drive secular growth.
Land Rover commands strength; Evoque to drive growth, market share
gains.
Jaguar's niche presence offers significant headroom to grow.
China a big opportunity; JLR's local presence will boost competitiveness.
Improved volumes, market mix, cost efficiencies to offset cost push.
TTMT's domestic CV business has seen reduced volatility driven by higher
LCV contribution.
Outlook for luxury vehicles positive, JLR can drive secular growth
The luxury vehicle market will post CAGR of 8.9% to 9m units over 2011-15. We
expect China and BRIKT (Brazil, Russia, India, Korea and Turkey) to be key growth
drivers with CAGR of 11.4% and 8.6% respectively. Jaguar Land Rover's (JLR) luxury
vehicle market share (~4% or 0.23m units), comprising 1.3% in luxury cars and 9.9%
in luxury SUVs, is small compared with the top three players. JLR's weakness in cars
offers headroom for growth, driven by planned launches over 2-3 years. JLR's entry in
the lower luxury segment will give it access to higher volume segments, where it has
no presence.
Land Rover commands strength; Evoque to drive growth, market share
In the global premium SUV segment, Land Rover's volumes are comparable with those
of BMW (excluding X1), Mercedes Benz and Audi. Within Land Rover brand, Range
Rover portfolio enjoys a relatively more premium image. The luxury SUV segment
registered 11.6% CAGR over CY00-10 and we expect it to post 9.7% CAGR over
CY10-15. JLR's launch of Evoque in the high volume potential compact luxury SUV
segment will be a key growth driver over 2-3 years.
Jaguar's niche offers significant headroom for growth
Land Rover competes well with the top three luxury SUV makers, but Jaguar's volumes
lag its peers. It has just three models and seems to be weak, with volumes of only
~54,000 units (1.3% market share). Jaguar's small product range and absence in the
high volume, entry-level luxury segment are major reasons for its comparatively smaller
size. We foresee strong potential for Jaguar in the entry-level luxury segment (D2), a
market of over 1.1m units a year. Jaguar can leverage its brand heritage to gain market
share in the luxury car segment. JLR's European peers sell ~1m cars in the segment
in which Jaguar is present and ~1.2m units in the compact luxury car segment, which
Jaguar plans to enter by CY14.