Brexit triumph: Jaguar Land Rover revenue soars 22% in major coup for Britain
Bentley CEO reveals they're moving to electric cars
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Strong demand for the New Range Rover saw the order book swell by 30,000 to reach a record high of almost 155,000 new vehicles. Meanwhile wholesales to dealers for the final three months of 2021 rose eight percent on the previous quarter with production volumes up 41 percent. Jaguar Land Rover’s (JLR) Chief Financial Officer Adrian Mardell said the figures show “the progress we’ve made in reducing the breakeven point in the business through mix optimisation and cost efficiencies so we will be well placed as supply and sales volumes improve”. The company’s latest update comes at a time the car industry has seen major falls in manufacturing.
In its most recent data the Society of Motor Manufacturers and Traders found UK car production fell -6.7 percent last year making 2021 the worst year since 1956.
Despite the rise in wholesales, overall retail sales have taken a hit falling 37.6 percent compared to a year earlier.
Consequently profit before tax came in at a £9million loss for the quarter.
The car industry widely has been hit by disruptions to supply chains which have constrained production, particularly a lack of semiconductors.
The chips are a key part in modern cars being used in areas ranging from dashboard touchscreens to automatic braking systems however there has been a widespread shortage of them as industry has started up again since the pandemic.
A number of companies, including Toyota, Ford and BMW, have all had to scale back production in recent months as a result.
JLR says the situation is now beginning to improve however it expects shortages to continue throughout 2022.
JLR CEO Thierry Bolloré commented: “Whilst semiconductor supplies have continued to constrain sales this quarter, we continue to see very strong demand for our products underlining the desirability of our vehicles.
“The global order book is at record levels and has grown an incredible 30,000 units for the New Range Rover before deliveries even start this Quarter.
“We continue to execute our Reimagine strategy to realise the full potential of the business and create the next generation of the most desirable luxury vehicles for the most discerning of customers.”
While the car industry has been going through a tough period, one silver lining has been the rapid growth in electric vehicle production.
According to the SMMT battery-electric and hybrid vehicles saw new registrations rise 58.7 percent in 2021.
As proof of their growing popularity, the Tesla Model 3 emerged as the second best selling car of the year and the number one bestseller in December.
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JLR said its electrified retail sales had increased 69 percent in the third quarter of last year reflecting this trend.
As global supply chains improve British car manufacturers will be increasingly eyeing opportunities for overseas sales.
According to the Government’s Benefits of Brexit document released this week JLR could potentially gain from reduced tariff barriers to Indian markets where the demand for cars is expected to grow 94 percent over the next decade.
The document also suggests UK based supply chains could be used more in the company’s Indian manufacturing.
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