Easing of microchip supplies helps drive sales at Jaguar Land Rover

Sales of Jaguar Land Rover models have risen during the luxury car maker’s first quarter period, ending June 30, 2023, due to the continuing improvement in microchip and other supply constraints.

Wholesale volumes for the first quarter were 93,253 units, excluding the Chery Jaguar Land Rover China joint venture, up 30% compared with the same quarter a year ago.

Wholesales were slightly lower, down one per cent, compared with the prior quarter ending March 31, 2023, reflecting shipping schedules, while production was up quarter on quarter.

Retail sales for the first quarter were 101,994 units, including the Chery Jaguar Land Rover China JV, up 29% compared with the same quarter a year ago.

Retails were broadly flat, down one per cent, compared with the prior quarter ending March 31, 2023.

Compared with the prior year, retail volumes were higher in the Overseas (up 83%), North America (up 42%), China (up 40%) and UK (up six per cent) regions while flat in Europe (zero per cent).

By model, retail sales of the group’s three most profitable models were up significantly compared with the same quarter a year ago with Range Rover up 199%, Range Rover Sport up 42% and Defender up 90%.

Wholesale sales are the finished cars JLR sells as a business, while retails are vehicles customers buy from retailers.

The order book remained strong with more than 185,000 client orders at quarter end, reducing from 200,000 at March 31, 2023, in line with expectations, as chip and other supply constraints continue to improve.

Range Rover, Range Rover Sport and Defender demand remains particularly strong, representing 76% of the order book.

JLR will report full financial results for quarter one later in this month. Based on preliminary cash balances, JLR expects to report positive free cash flow of more than £400m in the quarter.

JLR has three production plants based in Halewood, Merseyside, and the West Midlands.