Jaguar Land Rover blames 'unfavourable' inflation and wholesale drop for £524m losses

Jaguar Land Rover lost £524m before tax during its latest financial quarter as its revenue dropped by £600m.

The automotive giant has posted a revenue of £4.4m for the three months to the end of last month, down 7.6% from the same period in 2021.

JLR said its losses "primarily reflect" the lower wholesale volumes as well as "unfavourable" inflation of £161m and currency and commodity revaluation of £236m year on year.

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The company added that "despite strong demand and a record order book", sales continued to be "constrained by the global chip shortage, compounded by the slower than expected" production ramp up of the New Range Rover and Range Rover Sport and the impact of Covid lockdowns in China.

Retail sales in the quarter totalled 78,825 vehicles, 83 lower compared with the last quarter ending March 31, 2022, and down 46,000 from the same quarter a year ago.

Wholesale volumes were 71,815 vehicles in Q1 (excluding its China joint venture), down 6% compared to the last quarter.

JLR added that its financial performance is "expected to improve significantly" over the year with chip supply forecast to improve through "enhanced supplier engagement" including long-term partnership agreements, as well as ramping up New Range Rover and Range Rover Sport production.

Chief executive Thierry Bolloré said: "Our strategy to deliver the future of modern luxury to our clients continues at speed, as we accelerate our plans for an electric-first, brand-led business.

"Although headwinds from the global semiconductor supply and Covid lockdowns in China have impacted our business performance this quarter, I am pleased to confirm that we have a completely reinforced organisation setup to respond to the semiconductor crisis.

"This is now starting to recover production growth to achieve greater volumes and will allow us to take advantage of our record order book in the second quarter."

The company has UK sites in Whitley, Gaydon, Solihull, Manchester, Castle Bromwich, Wolverhampton and Halewood.

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