Jaguar Land Rover’s (JLR) worldwide deliveries during January–September fell more than double the average level of four competitors, indicating its shortcomings in resolving the semiconductor shortage-related supply chain issue. British luxury companies sold nearly as many automobiles in nine months this year as ten years ago. September retail sales were 245,954, JLR’s second-lowest in almost a decade.
According to official data, Jaguar and Land Rover, owned by Tata Group, blame semiconductor shortages for low volumes, although Mercedes-Benz, BMW, Audi, and Volvo have done better.
Despite a 10% sales dip, BMW sold seven times more cars than JLR between January and September. Mercedes-Benz, which sold six times more than JLR, had its retail drop by 6%. JLR volumes declined 28% despite a 205,000-unit order book.
JLR announced changes at its Solihull facility in the UK this month, replacing low-margin models with more profitable ones. Due to semiconductor shortages, it prioritizes high-margin items.
Range Rover and Range Rover Sport will be Tata Motors’ top priorities. These temporary modifications are due to the chip problem. From 147,000 in the first half, the two brands expect to sell 160,000 units in the second half of this financial year.
JLR is partnering with chip vendors to increase supply visibility and assist future product programs. As a result, several key chip suppliers have inked agreements, and more are in the works. As a result, JLR reduced its Ebit projection to a “positive margin” from 5% for the current financial year. It also expects a “breakeven at free cash flow (FCF)” instead of 1 billion pounds.