Jaguar Land Rover today reported increasing retail and wholesale volumes for the second quarter of FY23 (three-month period to 30 September 2022).
Retail sales for the quarter were 88,121 vehicles, an increase of 9,296 compared with the previous quarter ending 30 June 2022. Compared to the first quarter, retail sales were higher in China (+38%), North America (+27%) and Overseas (+14%) but were lower in UK (-7%) and Europe (-10%).
Wholesale volumes were 75,307 units in the period (excluding our China Joint Venture), up 4% compared to the previous quarter ending 30 June 2022. This improvement was lower than planned, primarily due to a lower than expected supply of specialised chips from one supplier which could not be readily re-sourced in the quarter. This was mitigated partially by further prioritisation of production to the highest margin products, while new agreements with semiconductor suppliers are expected to enable sales improvements in the second half of the fiscal year.
The production ramp up of New Range Rover and New Range Rover Sport improved with 13,537 units wholesaled in the quarter, up from 5,790 in Q1. This is expected to continue improve in the Second Half.
The Company continues to see strong demand for its products, with global retail orders again setting new records in the quarter. As at 30 September 2022, the total order book has grown to 205,000 units, up around 5,000 orders from 30 June 2022. Demand for the New Range Rover, New Range Rover Sport and Defender remain strong, accounting for over 145,000 of the 205,000 orders.
Jaguar Land Rover expects to report unaudited results for the three months ending 30 September 2022 in the first half of November. The Company expects free cashflow to be near break-even despite the lower than expected wholesale volumes, based on preliminary cash balances of £3.7 billion. Free cashflow in the second half of the fiscal year is expected to be positive driven by sequential improvement in wholesale volumes.