JLR reported a surge in sales volumes during the second quarter of FY24, with wholesale volumes reaching 96,817 units (excluding the Chery Jaguar Land Rover China JV). This represents a substantial 29 percent increase compared to the same quarter last year. Despite the challenges posed by the annual two-week summer plant shutdown, the company managed to achieve a four percent increase compared to the preceding quarter. For the first half of the financial year, wholesale volumes totalled 1,90,070 units, demonstrating a robust 29 percent growth compared to the previous year.
The luxury automaker also experienced robust retail sales growth, with 1,06,561 units sold during the second quarter, including figures from the Chery Jaguar Land Rover China JV. Retail volumes exhibited growth in all regions year-on-year, with overseas sales surging by 56 percent, North America up by 32 percent, Europe by 16 percent, the UK by 9 percent, and China by 7 percent.
JLR's order book remained healthy, ending the second quarter with 1,68,000 client orders. This slight reduction from 185,000 at the end of the first quarter was expected and reflects increased order fulfilment. Notably, high-margin models such as Range Rover, Range Rover Sport, and Defender accounted for a significant 77 percent of the order book. The company also reported an improved model mix year-on-year, with Range Rover Sport sales soaring by 292 percent, Defender by 74 percent, Discovery by 75 percent, and Range Rover by 19 percent.
An analyst that Autocar Professional spoke with said, “We have a Buy rating on the stock. Our constructive view is driven by: i) expectations of continuation of a cyclical upturn in JLR and domestic PVs/CVs; ii) a healthy order book at JLR, which would improve the mix in favour of the more profitable LR brand; iii) increasing focus on EVs in domestic and JLR businesses; iv) margin expansion emanating from rising economies of scale and cost-cutting measures; and v) a reduction in leverage on account of robust FCF.”