FOURTH QUARTER SALES IMPROVING BUT REMAIN CONSTRAINED BY SEMICONDUCTOR SHORTAGES

• Wholesales of 76.5K vehicles in Q4, up 11% on Q3, reflecting gradual improvement in chip supply 

• Retail sales in quarter down 1% on Q3, with the full year down 14% compared to FY2020-21 as retailer inventories remain below normal levels 

• Demand continues to be strong, with order book growing to a record 168K units 

• Expect gradual improvement in chip supply to continue through the next financial year 

Jaguar Land Rover retail sales for the three-month period to 31 March 2022 continued to be constrained by the global semiconductor shortage. However, the Company saw a gradual improvement in chip supply leading to improved production and wholesale volumes compared to the previous quarter. This is expected to continue through the next fiscal year. Underlying demand for Jaguar Land Rover products remains strong with record orders in the quarter. 

Wholesale volumes were 76,526 units and production volumes were 82,722 units in the period (both excluding China Joint Venture), up 11% and 15% respectively compared to the previous quarter ending 31 December 2021. Compared to the previous quarter, wholesale volumes were up by 23% for Defender, 14% for Range Rover Sport and 29% for Discovery. The quarter was also noteworthy for the first deliveries of the New Range Rover, with 1,910 wholesales with the prior model now running out. 

Retail sales for the quarter ending 31 March 2022 were 79,008 vehicles, down 1% (1,118 units) from the previous quarter ending 31 December 2022 and 36% (44,475 units) from the quarter a year ago ending 31 March 2021. Retails were higher compared to the previous quarter in UK (+34%), North America (+5%) and Overseas (+10%) but were lower in China (-18%) and Europe (-17%). 

Wholesales (excluding the China Joint Venture) for the fiscal year ending 31 March 2022 were 294,182, down 15% compared to the fiscal year ending 31 March 2021. Retail sales for the fiscal year ending 31 March 2022 were 376,381, down 14% compared to the fiscal year ending 31 March 2021. 

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 again setting new records in the quarter. As at the 31 March 2022, the total order book has grown to over 168,000 units, up around 14,000 orders from the 31 December 2021. Demand for the New Range Rover and New Defender are particularly strong with over 45,500 and 40,000 orders respectively. 

Commenting on the sales results, Lennard Hoornik, Jaguar Land Rover Chief Commercial Officer, said: 

“The successful New Range Rover launch, as well as the momentum gained from Defender, has resulted in a steadily increasing order bank, now at a record 168,000 units. The customer response to the first deliveries of New Range Rover is strong and we remain optimistic for the future, despite the geo-political and macro-economic challenges facing the industry at present.” 

The conflict in Ukraine has not materially impacted our wholesale volumes in the quarter. The impact on production has also been limited due to active management of the parts supply chain, including developing alternatives for the relatively small number of parts that are sourced from the affected countries. However, it is difficult to predict how supply and inflationary pressures will impact the coming quarters. Our first priority remains the welfare of our employees, and the Company has been providing humanitarian support for the families of colleagues impacted by the conflict and through the supply of vehicles to the International Federation of Red Cross and Red Crescent Societies. 

Jaguar Land Rover expects to report audited results for the fiscal year ending 31 March 2022 during May 2022. While the Company is still closing the books, it expects to report positive cashflow for the fourth quarter1 in line with expectations, based on preliminary cash balances.