Defender, Range Rover and Range Rover Sport make up 77% of 168,000 order bank
JLR generated £13.8bn between March and September, with profits climbing to £442m from a £173m loss last year
Jaguar Land Rover (JLR) posted record revenues of £13.8 billion in the first half of the financial year, a 42% year-on-year increase, alongside a substantial profit increase.
The manufacturer’s financial results for the second quarter of the 2023-2024 financial year reveal it generated £6.9bn in revenue from July to September, with a pre-tax profit figure of £442 million – up from a £173m loss in the same quarter last year.
The latest numbers reflect a rapid recovery from heavy losses in the wake of the pandemic. JLR recorded losses of £861m in the 2020-2021 financial year, chiefly as a result of investments made in its ‘Reimagine’ transformation plan, significant supply chain challenges and a downturn in demand due to Covid restrictions.
Now, improved sales figures – JLR sold 96,817 cars from July-September, up from 89,899 in the same period last year – as well as an improved model mix and reduced operating costs have helped JLR to boost its profits and prompted it to give a more optimistic outlook on its full-year performance.
Pre-tax profit margins were posted at 7.2% last quarter, and the firm has now raised its outlook from 6% to 8% for the 2023-2024 financial year.
The firm expects wholesale volumes to “gradually increase” over the second half of the year, which will help to further reduce an order backlog of 168,000 units – comprised chiefly (77%) of high-margin Range Rover, Range Rover Sport and Land Rover Defender models.
JLR’s £15bn transformation programme continues apace, and the latest financial figures have been revealed in the wake of several high-profile investment announcements in recent months.
JLR has committed £1.4bn to the electrification of its Halewood and Solihull production facilities, announced the creation of a £250m ‘Future Energy Lab’ at its Whitley HQ near Coventry, and has confirmed its factory in Nitra, Slovakia, will be adapted to build EVs by the end of the decade.
It has also confirmed plans to hire 300 new technicians to develop and build electric cars, and has partnered with Wykes Engineering to develop a large-scale energy storage solution using second-life EV batteries.
As part of today’s announcement, JLR also confirmed that Indian sibling firm Tata Passenger Electric Mobility (TPEM) – also owned by industry giant Tata – will use its EMA electric car platform for a new range of premium EVs under the Avinya brand, due from 2025. It is not confirmed, though, whether these could be built alongside JLR’s own EMA-based SUVs in the UK, or sold here.