JLR retail sales fall in Q3FY22 due to semiconductor shortages

Retails were lower across all regions compared to the preceding quarter, including China (-6.9%), Europe (-6.8%), North America (-11.8%), UK (-24.3%), and Overseas (-25.4%).

However, wholesale volumes were 69,182 units and production volumes were 72,184 units in the period (both excluding China JV), up 8 percent and 41 percent, respectively, compared to the preceding quarter ending September 30, 2021.

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The increase in production reflects a start in improved chip supply, said the company, which is part of Tata Motors. Compared to the preceding quarter, Range Rover wholesale volumes were up by 91.8 percent, Range Rover Sport by 64.0 percent and I-Pace by 34.5 percent.

JLR, in a statement, said despite the impact of the semiconductor shortage on production and sales, the company continued to see strong demand for its products with global retail orders at record levels.

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The total order book has grown to over 154,000 units, up by nearly 30,000 orders from the previous quarter for the New Range Rover, while demand for the Land Rover Defender remains strong with nearly 36,000 orders.

Commenting on the sales results, Lennard Hoornik, Jaguar Land Rover Chief Commercial Officer, said: “The New Range Rover is the embodiment of Jaguar Land Rover’s vision for Modern Luxury by Design. Furthermore, the Land Rover Defender continues to contribute to a record order bank next to our all electric Jaguar I-PACE. Semi-conductor supply challenges continue within the industry but our wholesale volumes are improving. We look forward to completing delivery to global customers as supply improves in 2022.”

At the end of January, Jaguar Land Rover expects to report unaudited results for the third quarter. Initial estimated cashflow for the quarter is about £150 million (nearly Rs 1500 cr) positive, it said.

"Looking ahead, the chip shortage remains dynamic and difficult to forecast, however, we expect supply to continue to improve in Q4 of the fiscal year ending 31 March 2022," the company stated.