Better sales figures give a big boost to Jaguar Land Rover

COVENTRY car maker Jaguar Land Rover has been buoyed by a healthy set of sales figures for the second quarter of the financial year.

The latest results come as the automotive sector continues to struggle due to the effects of the coronavirus pandemic.

And although the sales boost represents a big boost for the car maker over the first quarter Jaguar Land Rover said it continues to be impacted by Covid-19.

In the three months to the end of September Jaguar Land Rover sold 113,569 vehicles globally, compared to 74,067 between April and June.

Sales for the period were still down by 11.9% compared to the same period in 2019.

The company’s performance in China came as particularly welcome news.

Sales in China were up 14.6% on the first quarter and 3.7% year-on-year.

The month of September also saw sales up 28.5% yearon-year in China. Jaguar Land Rover said almost all of its retailers worldwide are now open or partially open and its plants have resumed production with Covid-19 protocols in place.

Factories in Solihull, Halewood and Nitra in Slovakia, as well as the Engine Manufacturing Centre near Wolverhampton, have now increased to a two-shift pattern to meet increasing demand.

The biggest sales rise in the second quarter was in the UK (+231.6%), followed by Europe (+78.8%), North America (+21.3%) and Overseas (+35.1%). Despite the rise, sales in these regions have not yet recovered to preCovid levels a year ago: UK (-2.9%), North America (-15.8%), Europe (-19.8%) and Overseas markets (-30.3%).

Highlights for the company included keen interest in the new Land Rover Defender.

Demand has increased over the period with 4,508 Defenders sold in the month of September. A number of refreshed models have also been launched in the shape of the Jaguar F-pace and Range Rover Velar, both of which now have mild-hybrid (MHEV) and plug-in hybrid (PHEV) variants.

Jaguar Land Rover will be releasing its financial results for the quarter to 30 September 2020 later this month.

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.

Jaguar Land Rover’s chief commercial officer Felix

Brautigam said: “Covid-19 and second lockdowns continue to impact the global auto industry but we are pleased to see sales recovering across our markets.

“In China, the first region to come out of lockdown, our performance has been particularly encouraging.

“But we are also seeing strong improvement versus the preceding quarter in other key markets, 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.”

Jaguar’s most successful models for the period were its range of SUVS - the all-electric I-pace, the E-pace and the F-pace.

For Land Rover it was the Defender across global markets, with the Discovery and Discovery Sport doing particularly well in the UK.

The models that performed well in the Chinese market were the Range Rover, Range Rover Evoque and the Discovery Sport.

Mr Brautigam added: “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.

“In addition, our brand new smooth, torque-rich six-cylinder diesel with mild-hybrid technology debuted in the Range Rover and Range Rover Sport.”