Microchip shortage puts brakes on JLR sales, despite record order book
The continuing squeeze on the supply of microchips is hitting deliveries at luxury car maker, Jaguar Land Rover, which has logged a record number of orders which now stand at almost 200,000.
The manufacturer, which has production plants at Halewood in Merseyside and Solihull and Castle Bromwich in the West Midlands, released sales volumes for the first quarter period, to June 30,
They revealed the drag on deliveries, mainly due to the global chip shortage, but also compounded by the run out of the prior model Range Rover Sport, with deliveries just starting, and the impact of new COVID lockdowns in China.
Retail sales for the quarter ending June 30, 2022, were 78,825 vehicles, broadly flat – 183 units lower – compared with the previous quarter ending March 31,2022 and down 37% (46,000 units) from the quarter a year ago ending June 30, 2021.
Compared with the prior quarter, retails were higher in the UK, up 10%, and Europe (+49%) but were lower in China (-5%), North America (-30%) and overseas (-10%), reflecting the transition to new models and delivery times to these markets.
Wholesale volumes were 71,815 units in the period, excluding the group’s China joint venture, down six per cent compared with the previous quarter ending March 31, 2022.
Wholesale sales are the finished cars JLR sells as a business, while retails are vehicles customers buy from retailers.
The group said it continues to see strong demand for its products, with global retail orders again setting new records in the quarter.
As at June 30, 2022, the total order book has grown to almost 200,000 units, up around 32,000 orders from the March 31, 2022.
Demand for the New Range Rover, New Range Rover Sport and Defender are particularly strong with more than 62,000, 20,000 and 46,000 orders, respectively.
Jaguar Land Rover expects to report unaudited results for the three months ending June 30, 2022 in late July.