The Land Rover Defender has crossed a monthly run rate of 5,000 units and has an order book of over 14,000 units. Cumulatively, it means that nearly three months of sales are already accounted for.
Sales of the Land Rover Defender grew 66 percent to 16,286 units quarter on quarter in Q3 FY2021. This performance was mostly on the back of favourable sales mix, cost performance and partial reversal of prior period reserves for emissions and residual values. Also, the company’s management recently informed investors that JLR will be ramping up its EV portfolio which currently accounts for nearly 53 percent of sales. Out of the total, about 12 percent are BEVs and PHEVs.
JLR sees recovery in sales
The Tata Motors-owned Jaguar Land Rover saw significant improvement in Q3 retail sales, up 13.1 percent at 128,469 vehicles compared to Q2 but still 9 percent lower than pre-Covid levels a year ago. Sales in China, one of its key markets, were up 20 percent sequentially. Most other regions also witnessed a sequential recovery though still below prior year.
Jaguar Land Rover remains encouraged by the Brexit trade deal agreed in December between the UK and the European Union. This has avoided the risk of tariffs on automotive parts and finished vehicles, although there will still be increased customs administration requirements.
Offering an outlook for the future, the company continues to expect to generate strong EBIT margins and positive free cash flow in Q4 FY2021 despite the external challenges. It targets achieving positive free cash flow in subsequent years, reducing net debt and increasing financial resilience.
Recently appointed Jaguar Land Rover Chief Executive Officer, Thierry Bolloré said, “Looking ahead, these challenges continue, including the Covid pandemic and its impact on the global economy, the UK’s new trading relationship with the EU and the significant technological changes taking place in the automotive industry. In this environment, I’m working with my management team on plans to realise an exciting future for Jaguar Land Rover, which I look forward to sharing in due course.”