Losses slashed at Jaguar Land Rover as chip supply issues ease

Losses have been slashed at Jaguar Land Rover as its revenue grew and chip supply issues eased.

The automotive giant has posted a pre-tax loss of £64m for the year to March 31, 2023, £348m better than the previous 12 months.

For its final quarter, JLR's revenue totalled £7.1bn, up 28% compared to the prior three months and up 49% on the same period in 2022.

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Its pre-tax profit for the quarter totalled £368m, up from £9m a year ago.

JLR said that as a result of its "strong cashflow", its net debt reduced to £3bn.

Wholesale volumes for the fourth quarter were 94,649 vehicles (excluding the Chery Jaguar Land Rover China joint venture), up 19% compared to the prior quarter ending December 31, 2022, and 24% compared to the same quarter a year ago

Compared to the prior year, wholesale volumes were higher in all markets led by overseas (+62%), UK (+24%), Europe (+22%), China (+17%) and North America (+2%).

Interim chief executive Adrian Mardell said: "JLR delivered a strong set of results for the fourth quarter.

"We increased production and delivered revenue, profit, free cash flow and wholesales growth as chip supply continued to improve.

"For the fiscal year ahead, while we are mindful of the headwinds that remain, our target is to increase EBIT margins to over 6% and deliver significantly positive free cash flow to reduce our net debt further, while increasing investment to £3bn.

"With the collective strength of our people, we will continue to deliver our Reimagine strategy.

"Demand for our exceptional modern luxury vehicles remains strong and with a pipeline of ultra-desirable electrified models on the horizon, I am excited and confident for our future."

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