Carmaker Jaguar Land Rover sees rise in wholesale volumes and sales as semiconductor chip shortage eases. Tony McDonough reports
Jaguar Land Rover (JLR) is finally getting on top of the global computer chip shortage that has dogged the company for almost two years.
In spring 2021, JLR was forced to temporarily suspend production at its factory in Halewood in Merseyside due to the semiconductor shortage. Around 3,700 people at the plant assemble the Range Rover, Evoque and the Land Rover Discovery Sport models.
Despite a strong global demand for its vehicles JLR was unable to get cars out of the door in sufficient volumes and this hit sales, leading to fiscal losses.
On Tuesday, the company said wholesale volumes for the three months to December 31, the third quarter in its fiscal year, saw wholesale volumes increase as the chip problem eased.
Wholesale volumes were 79,591 units in the period (excluding the Chery Jaguar Land Rover China joint venture), up 5.7% compared to the prior quarter ending September 30. It was 15% higher than the same quarter a year ago.
Compared to the prior quarter, wholesale volumes were higher in North America (+17%), UK (+13%) and overseas (+10%) and lower in China (-13%) and Europe (-3%). Volumes in China were impacted by COVID.
Production ramp up of New Range Rover and New Range Rover Sport continued with 27,456 units wholesaled in the quarter, up from 13,537 in Q2.
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Retail sales for the third quarter were 84,827 units, up 5.9% compared to the same quarter a year ago. They were 3.7% lower against the prior quarter ending September 30, reflecting timing between retails and wholesales.
In its latest trading update JLR added: “The company continues to see strong demand for its vehicles.
“As at December 31, 2022, the total order book increased to 215,000 client orders, up around 10,000 orders from September 30, 2022. Demand for the New Range Rover, New Range Rover Sport and Defender remain strong and represent 74% of the order book.”
It also said it had completed a renewal of its undrawn revolving credit facility with 23 banks at £1.45. The maturity date has been extended from March 2024 to April 2026.