Tumbling demand in China impacts Jaguar Land Rover sales
Sales at Jaguar Land Rover rose significantly in the UK and North America last month, but the car manufacturing giant said this was offset by a 49% decrease in sales to China.
New figures, which come after the Coventry headquartered manufacturer announced a £90m loss during the second quarter of its current financial year, revealed total retail sales of 44,282 vehicles in October, down 4.6% year on year despite strong sales of newer models, namely the Jaguar I-PACE and E-PACE and the refreshed Range Rover and Range Rover Sport.
Sales rose in the UK (46.9%) and North America (24.1%) with these new models.
JLR attributed the drop in sales in China to challenging market conditions amid tariff changes and continued trade tensions with the US, which are impacting consumer confidence and automotive purchases.
Sales also declined in Europe (13.5%) due to ongoing diesel uncertainty and sales were 4% lower year on year in overseas markets.
Chief commercial officer Felix Brautigam said: “We continue to face challenges in some markets, notably China. Despite this, we saw a strong performance in the UK and North America, which is a testament to our customers’ loyalty to our brands and the positive response of new customers to our evolving product line-up. As announced last week, we are implementing a turnaround plan and taking all the necessary steps to rejuvenate our business especially in China.
“This involves working closely with our sales network and balancing production with demand in the present market conditions to achieve healthy development for our future that is not unduly dependent on incentives. Looking ahead to the end of the year, Jaguar’s growth trajectory remains positive, as the all-electric I-PACE and sporty E-PACE compact SUV are growing in popularity and driving demand. Meanwhile at Land Rover, while slowing sales in China are disappointing, we remain encouraged by positive demand for exciting new products such as the Velar and the refreshed Range Rover and Range Rover Sport.”
JLR total retail sales for 2018 calendar year to date were 492,388, down 4% compared to the same period last year.
