Impacted by chip shortage and lockdowns in China, automobile manufacturer Jaguar Land Rover (JLR) posted a 37% fall in retail sales at 78,825 vehicles for the quarter ended June 30 on a year-on-year (y-o-y) basis. However, compared with the sequential March quarter, the Tata Group company’s sales were broadly flat.
The retail sales were lower by nearly 46,000 units on a y-o-y basis, while that on a sequential basis were down by 183 units, the luxury vehicle manufacturer said in a regulatory update.
“Despite a record order book, sales continue to be constrained by the global chip shortage, compounded by the run out of the prior model Range Rover Sport, with deliveries just starting, and the impact of Covid lockdowns in China,” it added.
Compared to the March quarter, retails were higher in the UK (up 10%) and Europe (up 49%). However, they were lower in China (fell 5%), North America (fell 30%) and overseas (fell 10%) reflecting the transition to new models and delivery times to these markets, it added.
Wholesale volumes were 71,815 units in the period (excluding China joint venture), down 6% compared to the previous quarter ending March 31, 2022.
As of June 30, 2022, JLR’s total order book has grown to almost 2 lakh units, up from about 32,000 orders as of March 31, 2022. Demand for the New Range Rover, New Range Rover Sport and Defender are particularly strong with over 62,000, 20,000 and 46,000 orders, respectively, it said.
JLR, a subsidiary of Tata Motors, said it continues to see “strong demand” (bookings) for its products, with global retail orders again setting new records in the June quarter.
In its annual general meeting on Tuesday, chairman N Chandrasekaran told shareholders that Tata Motors expects the second half of the current financial year to be “notably better” than the first half. The company also expects to sell an overall of 500,000 cars in this fiscal.
“The demand for our vehicles in each of our businesses — JLR, Commercial Vehicles and Passenger Vehicles — remains strong despite ongoing geopolitical, supply and inflation concerns. The overall supply situation, including that of semiconductors, is gradually improving and commodity prices are stabilising. We continue to work closely with our customers and ecosystem partners to mitigate risks and manage uncertainties,” he added.