JLR reports higher sales as micro-chip supply problems ease

Jaguar Land Rover has seen an increase in sales following an easing of supply constraints, notably micro chips used in its luxury vehicles.

The motor manufacturer, which has production plants in Halewood, Merseyside, and the West Midlands, reported better figures for both its fourth quarter of fiscal year 2023, to March 31, 2023, and for its full financial year.

Wholesale volumes for the fourth quarter were 94,649 units – excluding the Chery Jaguar Land Rover China joint venture – up 19% compared with the prior quarter ending December 31, 2022, and 24% compared with the same quarter a year ago.

Compared with the prior year, wholesale volumes were higher in all markets led by Overseas (62%), UK (24%), Europe, (22%), China (17%) and North America (two per cent).

Retail sales for the fourth quarter were 102,889 units – including the Chery Jaguar Land Rover China joint venture – up 21% from the prior quarter ending December 31, 2022, and up 30% compared with the same quarter a year ago.

Compared with the prior year, retail volumes were higher in all markets led by Europe (+47%), UK (+42%), China (+29%), Overseas (+29%) and North America (+12%).

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

For the full year ended March 31, 2023, wholesales – excluding the China joint venture – were 321,362, up nine per cent, and retails were 354,662, down six per cent.

Range Rover and Range Rover Sport production volumes continued to increase with 32,950 units wholesaled in the quarter, up from 28,000 in quarter three. Defender wholesale volumes increased to 27,513 units as JLR continued to operate a third shift at the Nitra plant in Slovakia, up from 23,816 in quarter three.

The order book remained strong with about 200,000 client orders at quarter end, about 15,000 lower than December 31, 2022, reflecting the higher retails this quarter. Range Rover, Range Rover Sport and Defender demand remains particularly strong, representing 76% of the order book.

JLR expects to report results for the fourth quarter and full year ended March 31, 2023, in May. On a preliminary basis, free cash flow is estimated to be more than £800m positive in the fourth quarter and in excess of £500m positive for the full year, based on a preliminary estimated cash balance of more than £3.7bn and net debt of around £3bn.