Team News Riveting
Whitley, UK, October 8
Jaguar Land Rover retail sales for the three-month period to 30 September 2021 continued to be constrained by the impact of the global semiconductor shortage on production, with wholesales for the period in line with July guidance.
Underlying demand for Jaguar Land Rover products remains strong with order books at record levels. Retail sales for the second quarter (Q2) ending 30 September 2021 were 92,710 vehicles, 18.4 per cent lower than the 113,569 vehicles sold in Q2 last year. Retails were lower year-on year in most regions, including North America (-15.6 per cent), China (-6.3 per cent), Europe (-17.0 per cent), and in the UK (-47.6 per cent), but were up in our Overseas region (+10.0 per cent).
Retail sales of all models were lower year-on-year with the exception of the new Land Rover Defender, which retailed 16,725 vehicles, up 70.4 per cent year-on-year, making it the bestselling model in the quarter.
In line with July guidance, Q2 FY22 wholesales totalled 64,032 units (excluding the China JV), down 12.8 per cent year-on year. As with retails, wholesales were lower year-on-year in all regions apart from the Overseas region (+40.5 per cent) and for most models, except the new Land Rover Defender up 18.0 per cent on 14,305 wholesales.
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 in excess of 125,000 vehicles.
Commenting on the sales results, Lennard Hoornik, Jaguar Land Rover Chief Commercial Officer, said: “The global semiconductor supply issue represents a significant near-term challenge for the industry which will take time to work through. However, it’s encouraging we were still able to grow sales of the Land Rover Defender in Q2. Moreover, we are delighted to have a record Company order book demonstrating the underlying demand for our products which we will satisfy when the semiconductor supply recovers.”
At the start of November, Jaguar Land Rover expects to report unaudited results for the three months ending 30 September 2021. At the end of the period, the Company had about £3.8 billion of cash and short-term investments (unaudited), after the issuance of a $500 million 8 year 5.500 per cent and €500 million 7 year 4.5 per cent bond in July. Despite the continuing semiconductor supply constraints, Jaguar Land Rover expects to report a free cash outflow of under £0.7 billion for the quarter, significantly better than the £1 billion outflow initially anticipated. Total liquidity at the end of the second quarter is expected of about £5.9 billion including a £2.0 billion undrawn committed revolving credit facility (RCF).
Looking ahead, the chip shortage remains dynamic and difficult to forecast, however, the Company expects semiconductor shortages to gradually ease over about the next 12 months from here.
