Third Quarter Sales Still Constrained by Semiconductor Shortages, Says JLR
Jaguar Land Rover retail sales for the three-month period to 31 December 2021 continued to be constrained by the global semiconductor shortage, though the Company started to see some improvement in chip supply and wholesale volumes compared to the preceding quarter.
According to a statement issued by the automaker, “Underlying demand for Jaguar Land Rover products remains strong and the Company has proactively managed semiconductor supplies to maximise production of higher margin products.
“Retail sales for the quarter ending 31 December 2021 were 80,126 vehicles, down 13.6% (12.6k units) from the preceding quarter ending 30 September 2021 and 37.6% (48.3k units) from the quarter a year ago ending 31 December 2020. 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%).”
It said, however, wholesale volumes were 69,182 units and production volumes were 72,184 units in the period (both excluding China JV), up 8% and 41% respectively compared to the preceding quarter ending 30 September 2021. The increase in production in particular reflects a start in improved chip supply. Compared to the preceding quarter, Range Rover wholesale volumes were up by 91.8%, Range Rover Sport by 64.0% and I-Pace by 34.5%.
Retail sales for the calendar year 2021 were 420,856, down 1.2% compared to the calendar year 2020 with Land Rover sales up 3.4%.
Despite the impact of the semiconductor shortage on production and sales, the Company continues to see strong demand for its products with global retail orders at record levels. The total order book has grown to over 154,000 units, up about 30,000 orders from the prior quarter for the New Range Rover, while demand for the Land Rover Defender remains strong with about 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. We are delighted that positive feedback at launch has led to a strong order intake for this first all new modern luxury model. 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 three months ending 31 December 2021. Initial estimated cashflow for the quarter is around £150 million positive.
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.