Jaguar Land Rover sales improves sequentially in September quarter2 min read . Updated: 05 Oct 2020, 09:43 PM IST
- Jaguar and Land Rover has been facing challenges in its main markets, China, US and Europe over the last three years
- The Covid-19 pandemic has exacerbated the situation for the Britain’s largest carmaker and its parent company Tata Sons
Vehicle sales of Tata Group owned premium vehicle manufacturer, Jaguar Land Rover (JLR), declined by 11.9% year on year to 113569 units due to Covid-19 related disruptions. Sales though improved substantially by 53% on a sequential basis on the back of recovery in demand in China.
Sales of Land Rover’s utility vehicles declined by just 5.9% year-on-year to 86222 units, while the same for Jaguar dropped by 26.7% to 27347 units during the period.
“China sales were particularly encouraging, up 14.6% on the prior quarter and 3.7% year-on-year. The month of September also saw sales up 28.5% year-on-year in China," the company said in a statement.
Indicating a continuing slowdown in the global economy, vehicle sales in other important markets like North America declined by 15.8%, in Europe by 19.8% and 30% in other markets. Most of these regions reported improvement in sales on a month-month basis.
The company ended September with about £3 billion of cash and short-term deposits, up £0.3 billion, primarily reflecting positive free cash flow as expected in the quarter. Total liquidity was about £5 billion, including the company’s £1.9 billion revolving credit facility, which remains undrawn, the company added.
According to Flix Brautingham, chief commercial officer, Jaguar Land Rover, China is the first region to come out of lockdown and the company’s performance has been encouraging. Vehicle sales have been improving in other markets as well compared to the preceding quarters with sales up more than 50% worldwide.
“The recovery has been demand-led and we are delighted that we have been able to reduce stocks to achieve ideal levels in most markets, despite the ongoing pandemic, to support a healthier and more profitable business for Jaguar Land Rover and its retailers. During the quarter we continued our ambitious roll-out of electrification to meet recovering demand. This included the launch of plug-in hybrid versions of the Range Rover Evoque, Land Rover Discovery Sport and Defender," added Brautingham.
Jaguar and Land Rover has been facing challenges in its main markets, China, US and Europe over the last three years as vehicle sales declined substantially due to increased competition, slowdown in global economies and falling sales of diesel vehicles. At the same time, the company also had to invest substantially in developing electric cars to keep competing with the German competitors and new comers like Tesla.
The Covid-19 pandemic has exacerbated the situation for the Britain’s largest carmaker and its parent company Tata Sons, which was in active discussion with the British government for financial help. Tata Sons has also been actively looking for partners to collaborate in the areas of developing electric and autonomous cars. The Mumbai based conglomerate had briefly considered selling its stake in the luxury vehicle manufacturer, according to news reports from Bloomberg.