Jaguar Land Rover (JLR) has reported a sharp drop in sales after supply disruptions caused by a fire at a parts supplier and the Middle East conflict. The UK's largest car manufacturer saw revenues fall by 9.6% year-on-year to £6 billion for the three months to June 30, with car volumes declining by 9.2%.
Production Disruptions and Model Phase-Out
The company, owned by India's Tata Motors, attributed the revenue decline to a series of factors. Car production was severely disrupted by a fire at a supplier's factory in Norway, which led JLR to temporarily halt production of its Range Rover and Range Rover Sport models at its Solihull plant in March. Additionally, sales volumes were affected by Jaguar's decision to cease production of several diesel and petrol-powered models, including the F-Pace, as part of a strategic shift towards electric vehicles.
Financial Performance and Market Challenges
JLR also posted a pre-tax profit, excluding exceptional items, of £109 million for the quarter, down from £351 million in the same period last year. Profit margins were further dented by a one-off provision tied to US fuel economy regulations, which partially counteracted the benefits of reduced US-UK tariffs.
CEO Statement and Future Outlook
PB Balaji, chief executive of JLR, said: "Despite the near-term industry challenges, we continue to see strong demand for our brands and look forward to the launch of four sensational new products in the coming months: Range Rover Electric, Range Rover Sport Electric, Range Rover GT and Jaguar Type 01. I would like to thank all our people, suppliers and retail partners for their continued dedication, resilience and support."
The company is focusing on electric models as part of a wider strategic overhaul aimed at reviving the Jaguar brand. The upcoming launches are expected to bolster JLR's market position despite the current headwinds.
