Jaguar Land Rover reports 3% drop in retail sales in second quarter | Capital market news

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Production declines 7% in second quarter due to aluminum supply disruptions

Jaguar Land Rover, the wholly-owned subsidiary of Tata Motors, recorded retail sales of 103,108 units in Q2FY24, down 3% from the same quarter of the previous year.

Retail sales for the first six months of FY24 stood at 214,288 units, up 3% on a year-over-year basis.

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Compared to the previous year, retail sales in the quarter increased by 29% in the United Kingdom, by 9% in North America, by 22% in Europe, by 17% in China and by 6% in the foreigner.

JLR’s production in the quarter was limited to around 86,000 units, down 7% from the same quarter last year, due to supply disruptions at a key supplier of high-quality aluminum which affected several equipment manufacturers.

Wholesale volumes of 87,303 units in Q2FY24 declined by 10% compared to the same quarter of the previous year due to aluminum supply restrictions. In addition, at the end of September, 6,500 vehicles were temporarily detained, mainly in the UK and Europe, to allow for additional quality checks. These vehicles will be sold in bulk in the second half.

The overall mix of the most profitable Range Rover, Range Rover Sport and Defender models accounted for 67% of total wholesale volumes.

“We expect a strong recovery in production and wholesale volumes in the second half of the financial year as the aluminum supply situation normalizes,” the company said.

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First publication: October 7, 2024 | 7:42 p.m. STI

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