June 16, 2021

Jaguar Land Rover’s sales dip in 2019, but show signs of recovery

2 min read

Carmaker Jaguar Land Rover (JLR) posted a 6per cent fall in full-year sales on Friday after a challenging year in which its performance was hit by the weakening Chinese autos market and falling demand for diesel vehicles in Europe.

Jaguar Land Rover unveils new Jaguar F-Type model during its world premiere in Munich
FILE PHOTO: Jaguar Land Rover unveils the new Jaguar F-Type model during its world premiere in Munich, Germany, December 2, 2019. REUTERS/Michaela Rehle

LONDON: Carmaker Jaguar Land Rover (JLR) posted a 6per cent fall in full-year sales on Friday after a challenging year in which its performance was hit by the weakening Chinese autos market and falling demand for diesel vehicles in Europe.

Retail sales stood at 557,706 vehicles in 2019, hit by a 13.5per cent slump in China, but in the last six months the firm reported double-digit growth in the country, with overall company sales up 1.3per cent in December.

“2019 was a year of two halves,” said Chief Commercial Officer Felix Brautigam.

“Over the last six months we saw a marked improvement in China, where intensive work with our retailers, combined with significant process and product improvements are starting to gain traction.”

At the start of 2019, JLR announced plans to cut around 10per cent of its workforce and it has been pursuing measures to reduce costs and improve cash flows by 2.5 billion pounds.

The company, owned by India’s Tata Motors , returned to the black in the three months to the end of September 2019, posting a 156 million-pound (US$204 million) profit.

JLR, like much of the car industry, has also faced the challenge of stepping up investment in zero and low-emissions vehicles as regulations tighten while simultaneously dealing with a drop in demand for some conventionally-powered models.

It has paired up with BMW to jointly develop electric motors, transmissions and power electronics which should allow it to share some of the high costs of advancing the green technology.

(Reporting by Costas Pitas; Editing by Kate Holton and Mark Potter)