Chip Shortage, China Lockdown Bites JLR; June quarter retail sales fall 37%
Hit by chip shortages and lockdowns in China, automaker Jaguar Land Rover (JLR) reported a 37% drop in retail sales to 78,825 vehicles for the quarter ended June 30 on an annual basis (on a yearly basis). year-on-year). However, compared to the March sequential quarter, the Tata Group company’s sales remained broadly flat.
Retail sales were down nearly 46,000 units on a yearly basis, while those on a sequential basis were down 183 units, the luxury vehicle maker said in a regulatory update.
“Despite a record order book, sales continue to be constrained by the global chip shortage, compounded by the depletion of the previous Range Rover Sport model, deliveries just beginning, and the impact of Covid lockdowns in China. “, he added.
Compared to the March quarter, retail sales increased in the UK (+10%) and in Europe (+49%). However, they were lower in China (decreased by 5%), North America (decreased by 30%) and overseas (decreased by 10%) reflecting the transition to new models and delivery times to these markets, he added.
Wholesale volumes were 71,815 units over the period (excluding joint venture in China), down 6% compared to the previous quarter ended March 31, 2022.
As of June 30, 2022, JLR’s total backlog has grown to almost 2 lakh units, compared to approximately 32,000 orders as of March 31, 2022. Demand for the new Range Rover, new Range Rover Sport and Defender is particularly strong with more than 62,000, 20,000 and 46,000 orders, respectively, he said.
JLR, a subsidiary of Tata Motors, said it continued to see “strong demand” (bookings) for its products, with global retail orders again setting new records in the June quarter.
At its annual general meeting on Tuesday, chairman N Chandrasekaran told shareholders that Tata Motors expects the second half of the current financial year to be “significantly better” than the first half. The company also expects to sell a total of 500,000 cars this fiscal year.
“Demand for our vehicles across each of our businesses – JLRs, commercial vehicles and passenger vehicles – remains strong despite ongoing geopolitical, supply and inflation concerns. The overall supply situation, including that of semi -drivers, is gradually improving and commodity prices are stabilizing. We continue to work closely with our customers and ecosystem partners to mitigate risk and manage uncertainty,” he added.