New models coming to market may boost income, but Evoque and Range Rover Sport declines have knock-on effect on profits in the fourth quarter of 2017

Jaguar Land Rover parent company Tata Motors has reported lower profits in the three months to December due to slower sales in North America and Europe.

A decline in Europe of 3.4% and North America of 2.4% for JLR contributed to a weaker 2017 fourth-quarter net income for Tata of around £189 million. This figure is far short of Bloomberg's estimate of £261m. JLR’s profit before tax for the period was £192m, reports Bloomberg

Despite the wider downturn, both the Jaguar and Land Rover brands posted stronger year-on-year sales in the UK of 20% and 18% growth respectively. However, January 2018 figures are less encouraging - Jaguar is down 19.3% compared with the same month last year, while Land Rover has shown more modest growth of 4.3%. 

“We have delivered credible financial results in a challenging period, during which JLR has continued to over-proportionally invest in long-term growth and autonomous, connected and electric technologies. Despite headwinds and uncertainty in some markets, JLR still delivered increased unit sales as we continued the launch schedule for new models,” said CEO Ralf Speth.

The output of JLR’s Halewood plant will be cut in light of slower sales of the two brands, although a JLR spokesman attributed the drop to Brexit uncertainty and consumer confusion over diesel. 

A reported slowdown in deliveries of the Evoque and Range Rover Sport was also to blame. A facelifted version of the Range Rover Sport began deliveries this month, while a facelifted Evoque arrives in 2019, with a hybrid variant mooted for production.

“JLR has delivered another record-breaking year in vehicle sales in what is now the seventh year of successive growth for Britain's largest car manufacturer,” said the spokesman. “However, the automotive industry continues to face a range of challenges which are adversely affecting consumer confidence.”

JLR sales boss Andy Goss recently described the newly introduced diesel car taxes as “counterintuitive”; the new taxes apply to any car that does not meet new Real Driving Emissions (RDE) step 2 real-world testing standards, which will be introduced in 2020. This means that no cars can be exempt from this tax yet, although the tax itself does not come into effect until 1 April.

Read more

Jaguar Land Rover sales boss: Budget diesel taxation “counterintuitive”

Jaguar Land Rover profits grow despite UK sales decrease

Jaguar Land Rover to drop production because of ‘Brexit uncertainty’ and diesel confusion

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Comments
48

5 February 2018

The mediocre and expensive E-Pace is going to hurt Jag further.

5 February 2018

thought it bettter than Q3 and X3 and looksm far nicer too.

5 February 2018
Ski Kid wrote:

thought it bettter than Q3 and X3 and looksm far nicer too.

Arguably it does, it's just 5 years off the (E)pace relative to the competition.

6 February 2018
Ski Kid wrote:

thought it bettter than Q3 and X3 and looksm far nicer too.

You mean the X1? The X1 is arguably a better car than the E-Pace - just read any review.

The trouble is threefold:

1. The price - you can get an X3 for not much more than an E-Pace; hint - the entry level fwd model is useless.

2. The E-Pace is heavier than an equivalently engined F-Pace - this does its handling, performance and economy no favours.

3. If Jag were counting on premium buyers for their baby SUV - well the X2 has just rained on their parade.

5 February 2018

The E Pace looks tiny on the TV advert.

5 February 2018

Spread themselves too thin....?, I think there are too many options on Range Rovers, Discovery’s, too many models, diluting the Brand has come too close to mainstream Brands.

Peter Cavellini.

5 February 2018
Peter Cavellini wrote:

Spread themselves too thin....?, I think there are too many options on Range Rovers, Discovery’s, too many models, diluting the Brand has come too close to mainstream Brands.

Kind of. Too many models overlapping and not enough elsewhere. Eggs in one basket, at least I think that's the English saying?

5 February 2018

They've expanded the model line too quickly with too little investment to finish the products off as well as they should be at the price point. They've also put all their bets on diesel for some time and don't yet have a compelling alternatively fuelled line-up. The initial product line expansion created a sales boost, as customers tried out the new offerings from JLR in markets where they previously had less choice.

What's happening now is customers are realising the new models are not as well made or well executed as they should be and that they are overpriced. Loyal customers of the Jaguar and Land Rover brand are turning away as the brand values they bought into have been eroded in an effort to gain mass-market acceptance.

The luxury heritage of both brands is being damaged by the over-expansion and cheapening of finishes, quality etc to save costs too help fund the expansion.

Not sure what the solution is - I guess commenting on how Jaguar have ruined their brand values is only likely to provoke abuse and comments about S-Types not selling. Maybe the key message is that JLR should do less in a more focussed and polished manner, but try telling that to bean counters looking for volume.

5 February 2018
hackjo wrote:

They've expanded the model line too quickly with too little investment to finish the products off as well as they should be at the price point. They've also put all their bets on diesel for some time and don't yet have a compelling alternatively fuelled line-up. The initial product line expansion created a sales boost, as customers tried out the new offerings from JLR in markets where they previously had less choice.

What's happening now is customers are realising the new models are not as well made or well executed as they should be and that they are overpriced. Loyal customers of the Jaguar and Land Rover brand are turning away as the brand values they bought into have been eroded in an effort to gain mass-market acceptance.

The luxury heritage of both brands is being damaged by the over-expansion and cheapening of finishes, quality etc to save costs too help fund the expansion.

Not sure what the solution is - I guess commenting on how Jaguar have ruined their brand values is only likely to provoke abuse and comments about S-Types not selling. Maybe the key message is that JLR should do less in a more focussed and polished manner, but try telling that to bean counters looking for volume.

Some Jaguar models aside, I think the quality is up there with the best. There is no dilution of the brand, some just have an issue with them no longer making the Defender, the brand is probably one of the strongest in Europe. Jaguar's issue is with its lack of models, simple as that.

5 February 2018

Wrong. The quality is dreadful. Panel fit issues, electronics glitches, cheap plastic finishes and rattles and creaks are rampant in the new Jaguar models, particularly the XE. 

In addition, Jaguar don't lack models, they lack product differentiation. Their models no longer stand out in a sufficiently tangible way from their competitors - they've copied the competition and failed to add any real additional value. The original XF was along the right lines, modern yet with very distinctive Jaguar character in the way it drove and the way the interior was done (diluted on the facelift, sadly.) The new stuff, while well engineered from a handling perspective, is anodyne and offers virtually nothing compelling over the competition.

They're capable enough cars, but not special enough for a luxury proposition.

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