Jaguar Land Rover reports sales boost as chip shortage eases
Jaguar Land Rover reported a big sales increases for the first quarter on Friday, with wholesale volumes up 30 per cent compared with the same period a year ago as the global chip shortage and supply constraints “continue to improve.”
The luxury car marque said it also expects free cash flow – what a business has left after paying day to day operating expenses – of £400 million as it looks ahead to its full year results toward the end of the month.
Retail sales rose 29 per cent year-on-year in the first quarter, with overseas demand leading the charge with an increase of 83 per cent.
North America and China in particular saw booming growth, up 42 and 40 per cent respectively, with the UK growing 6 per cent.
Its total order book sat at 185,000 at the quarter’s end.
Carmakers have benefitted from an easing of the global shortage of computer chips over the last year, which pummelled the sector during the pandemic.
The luxury car market in particular has enjoyed strong growth as supply chain issues subside, with new hurdles such as the cost-of-living crisis and recession having less of an effect on their target market.
In January, the Coventry-headquartered company returned to profitability for the first time in almost two years, as revenues soared 28 per cent in the final quarter of 2022 to £6bn.
Interim chief Adrian Mardell hailed the firms’ return into the black at the time, as a “testament to the hard work and dedication of our people across the business who have delivered a further increase in production.”
Shares in JLR’s owner Tata Motors’- a part of the Mumbai-based Tata Group – jumped nearly 4 per cent on today’s announcement.
The Indian conglomerate is currently deliberating over whether to locate a new multi-billion pound electric gigafactory in Somerset over Spain – with it currently looking likely to favour the UK.