Jaguar LandRover - comment

JLR released their Q4 sales numbers over the weekend, which showed a modest increase in Q3 at the wholesale level (marginally down at the retail level). Wholesale volumes were 76,500 for the quarter, in line with the expectation of break-even volumes. JLR volumes are still constrained by semiconductor supply issues, but the Company saw a gradual improvement in chip supply. This is expected to continue into FY23.

More importantly, demand for JLR products remains strong with record orders in the quarter and the order book now at a record 168,000. During the quarter, JLR launched the new Ranger Rover and coupled with the momentum of the Defender, which has sustained the order book. JLR is not directly impacted by the conflict in Ukraine and has alternatives for the relatively small number of parts that were sourced from affected countries.

Conclusion: JLR have a strong backlog, (mainly in the LandRover segment) and this will sustain medium-term sales. The issue remains the transition to all-electric, plus the wider issue of the sustainability of the Jaguar brand.