Global quarterly sales were up 3.5% on last year, but UK sales fell by 14%

Jaguar Land Rover (JLR) sales continued to grow in the first quarter of 2017, totalling 137,463 units worldwide, which is 3.5% up on the same period of 2016.

Demand grew by 30% in China, helped by the success of the market-specific Jaguar XFL, which boosted XF sales by 22%. North American sales were the second most improved, with numbers up by 16%.

UK sales dropped by 14%, likely impacted by recent changes in Vehicle Excise Duty (VED) rates, which substantially increased rates due on cars costing more than £40,000. This sales decrease prevented an improvement on European sales compared with the first quarter of 2016. 

Despite this, Coventry-based JLR’s first quarter revenue was up by 5% to £5.6 billion, with pre-tax profits totalling £595 million. Of this, £437m came from changes to the company’s pension plans, but JLR says that gain was offset by “the seasonality of sales in Q1 following a strong Q4 of 2016”, as well as launch and investment costs.

JLR CEO Ralf Speth said: "In challenging market conditions, we are continuing to plan for profitable, sustainable growth. Our teams have been hard at work creating world-class cars in an unprecedented level of launch activity for Jaguar Land Rover.”

JLR is planning on investing £4bn on new products, research and development and manufacturing in the coming years. It will launch the Jaguar I-Pace next year and is soon to open a new factory in Slovakia.

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Comments
9

9 August 2017

If the Conservative Party cared about the economy then they wouldn't have increased Vehicle Excise Duty on cars costing more than £40,000.

 

10 August 2017
max1e6 wrote:

If the Conservative Party cared about the economy then they wouldn't have increased Vehicle Excise Duty on cars costing more than £40,000.

 

...,.and cars costing less than £40,000.

9 August 2017

I cant believe that £1500 over 6 years is enough to stop people buying a JLR product, and its not as if other brands havent suffered the same tax change. Surely its more likely to be a reaction to the lack of plug in hybrids for CoCar users( I see loads of plug-in hybrid German cars about), or the lack of decent petrol atlernatives to diesel for private buyers?

9 August 2017
artill wrote:

I cant believe that £1500 over 6 years is enough to stop people buying a JLR product, and its not as if other brands havent suffered the same tax change. Surely its more likely to be a reaction to the lack of plug in hybrids for CoCar users( I see loads of plug-in hybrid German cars about), or the lack of decent petrol atlernatives to diesel for private buyers?

I am not sure it is an amount over 6 years that puts people off, or the lack of petrol alternatives necessarily. Indeed, the press are scare mongering people into buying petrol which may have a bit of an effect, but generally, I single out Land Rover (not Jaguar) for pricing some of their cars FAR too high. I am not saying this is the sole reason, but I am sure that some of the prices they quote for certain models put the buying public off. Jaguar I would argue (bar the Range Rover) are perceived as the more prestige brand of the two and therefore perhaps don't have as much of an issue with the prices they command. LR have lost the plot in some cases.

10 August 2017

I am annoyed that plonkers like Osborne and Cameron that have been reckless and incompetant in their final year of office have wrecked the economy to a certain extent on the stamp duty front  ie a mess and this ved.I am particularly concerned that may and hammond have not reversed these items and it just annoys me.The cost is a side issue so I am on strike so to speak no more buy to lets and cars over £40k new or small cars. A second hand pre April car 3 litre is what I will go for otherwise would hav ehad a new Sport or Velar.

10 August 2017

Basically an already expensive item went up £1500 over night, whilst it won't effect every sale it will still cost some sales, especially sub £45,000 ones.

 

Hydrogen cars just went POP

10 August 2017

probably more likely the awful new Disco rear end is putting off buyers!

10 August 2017

This is an incrediblty misleading headline. JLR's quarterly pre tax profit actually fell from £348m to £157m when you strip out the change of accounting treatment on the pension and other one off items. It is a heck of shame when Sky have more accurate headlines and numbers than Autocar:

Profit before tax and one-off items was £157m, down from £348m the previous year, mainly due to higher costs and pay increases.

10 August 2017

This is an incrediblty misleading headline. JLR's quarterly pre tax profit actually fell from £348m to £157m when you strip out the change of accounting treatment on the pension and other one off items. It is a heck of shame when Sky have more accurate headlines and numbers than Autocar:

Profit before tax and one-off items was £157m, down from £348m the previous year, mainly due to higher costs and pay increases.

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