NEW YORK (TheStreet) -- Tata Motors (TTM) - Get Report, India's largest auto maker by revenue, witnessed a 50% increase year over year in global vehicle sales during May, driven by a 72% jump in its U.K.-based Jaguar Land Rover (JLR) brands, the company revealed in a press release Tuesday.
Sales of commercial vehicles grew 45% to 36,689 units, while passenger vehicle sales surged 54% to 43,130 units. But the silver lining in the numbers were JLR global sales which stood at 19,053 units, up 72%. Jaguar sales for the month were 5,120, higher by 34%, while Land Rover sales were 13,933, higher by 93%, the company said.
The company expects sales of JLR luxury brands to remain robust during the rest of the year owing to a positive response to new models and robust demand in the two brands' U.K. home market,
Dow Jones Newswires
wrote. "Business is optimistic about volume growth (for JLR) in the coming year as well," said Tata Motors' spokesperson Debasis Ray.
Going forward, the company plans to invest GBP600 to GBP700 million this year on new product development and capital expenditure.
The company which produces the world's cheapest car, Nano, is mulling a price hike between Rs5000 and Rs15000 of new Nanos from August to September this year. The company reasons this move to increasing input costs and technology upgrades for BS-IV emission norms.
for some time now and continue to remain as we reckon that factors like low penetration levels, favorable demographics and a fast-improving economic environment along with high per capita income levels will help the sector sustain robust top-line growth.
The stock closed up 2.5% in trade on Indian Market Wednesday, while it has gained 13% during the last three weeks or so. Other ADR gainers during the week include