JLR reports 5.8% fall in FY19 sales; begins Brexit-linked plant shutdowns
08 Apr 2019
1
British car maker Jaguar Land Rover (JLR) today reported a 5.8 per cent fall in its fiscal 2018-19 sales to at 578,915 vehicles, compared to fiscal 2017-18.
During the year, the company introduced the all-electric Jaguar I-PACE and sales of the Jaguar E-PACE, Range Rover Velar and the refreshed Range Rover and Range Rover Sport ramped up. However this was offset by continuing weakness in China and the run out of the first generation Range Rover Evoque.
Retail sales were up significantly in North America (up 8.1 per cent), which marked its best ever full fiscal year and ninth consecutive year of growth. Volumes were also up in the UK (up 8.4 per cent) and in overseas markets (up 2.4 per cent). However, overall performance was impacted by weaker sales in China (down 34.1 per cent) reflecting weaker market conditions.
The company said it is taking decisive steps to address these, including working with its local retailers to improve customer experience and create a sustainable model. Sales in Europe were lower (down 4.5 per cent) because of diesel uncertainty as well as the regulatory changes due to WLTP.
Jaguar retail sales in fiscal 2018-19 were 180,198 vehicles, up 3.2 per cent year-on-year. This marked a record full fiscal year for the brand, reflecting increased sales of the Jaguar E-PACE and the all-electric I-PACE, which was named European Car of the Year in March, the first time a Jaguar has won the coveted prize.
Land Rover retailed 398,717 vehicles in fiscal 2018-19, down 9.3 per cent year-on-year reflecting the weaker China performance and run out of the first generation Evoque, although strong sales of the Range Rover Velar as well as the refreshed Range Rover and Range Rover Sport were encouraging, the company said.
Despite a challenging time for the automotive industry, JLR said it was able to deliver growth in three of the five regions it operates. But the China market remains a larger issue, it added. However, the company said it has no plans to push sales ‘at any cost’ to ensure that its brands remain desirable.
“Jaguar Land Rover total retail sales for the fourth quarter were 158,916 vehicles, down 8.0 per cent compared to the same period last year, and sales in March 2019 were 76,895 vehicles, down 8.2 per cent compared to March 2018,” said chief commercial officer Felix Brautigam.
Jaguar Land Rover is the UK’s largest automotive manufacturer, built around two iconic British car brands: Land Rover, the world’s leading manufacturer of premium all-wheel-drive vehicles; and Jaguar, one of the world’s premier luxury sports saloon and sports car marques.
With plants in China, Brazil, India, Austria and Slovakia, the company supports around 260,000 people through retailer network, suppliers and local businesses.
From 2020 all new Jaguar Land Rover vehicles will offer the option of electrification, giving our customers even more choice, the company said, adding it would offer electrified products across models range, embracing fully electric, plug-in hybrid and mild hybrid vehicles as well as continuing to offer the latest diesel and petrol engines.
JLR also today announced a 5-day shut-down of its UK plants over Brexit, in addition to other shutdowns that would curtail at least half the country’s car production.
The move that comes week ahead of Britain’s divorce from the EU is intended to prepare UK’s biggest car maker for any disruption resulting from Brexit. The decision to curtail production was taken a few months ago at a time when the departure date was 29 March.
A crash-out Brexit would hit automotive firms had with possible risks, including delays to the supply of ports and finished models, new customs rules, changes in models and up to 10 per cent tariff on finished vehicles.
BMW’s UK Mini and Rolls-Royce plants are also shuttered this week, as is Peugeot’s Vauxhall factory, which brought forward summer shutdowns to April.
Together JLR, Mini, Rolls-Royce and Peugeot’s Vauxhall brand, which is branded as Opel on the continent, built over 750,000 of Britain’s 1.52 million cars last year.
Honda has also scheduled six “non-production days” in April but has declined to say on which dates they will take place.
JLR has already had to cut output last year as it faces declining sales, partly as customers shun diesel vehicles, even as UK-based auto industry is faced with a number of issues like an unstable investment environment due mainly to a deep political crises with attached risks of trade frictions.
.webp)
.webp)
