AutoBeta(AutoBeta.net)07/27 Report--

On July 26, Jaguar Land Rover announced its performance in the first quarter of fiscal year 2021/22 (April-June 2021). Jaguar Land Rover achieved sustained and steady growth since the recovery from the impact of the epidemic in the first quarter, with global revenue reaching £ 5 billion, up 73.7% year-on-year.

Jaguar Land Rover sold 124,537 units worldwide, up 68.1% year-on-year, and sales in all markets showed year-on-year growth after business returned to normal, including the UK (+186.9%), Europe (+124.0%), overseas (+71.0%), North America (+50.5%) and China (+14.0%). In addition, electrified models contributed two-thirds of sales in the quarter and were favored by consumers in the global market. At present, Jaguar Land Rover has 12 product series around the world to offer electrification options among its 13 product series. In the future, Jaguar Land Rover will continue to deepen its electrification development process.

The Chinese market has taken the lead in recovering from the outbreak of the pandemic last year and performed strongly. Sales exceeded 27,000 units in the first quarter of fiscal 2021/22, representing a 14% year-over-year increase. As one of Jaguar Land Rover's most important markets in the world, in the first half of this year, the Chinese market accumulated sales of 54,669 vehicles, an increase of 52.0% year-on-year; as of June this year, it has maintained the growth momentum for 10 consecutive months.

Jaguar Land Rover's EBIT margin improved significantly this quarter compared with the same period a year earlier, while free cash flow reached £ 996m, up £ 574m from the previous year, achieving a steady recovery from the impact of the epidemic. At the end of the quarter, Jaguar Land Rover had global liquid assets of £ 5.7 billion, including £ 3.7 billion in cash and short-term investments and £ 1.9 billion in undrawn credit facilities.

Thierry Bolloré, Global CEO of Jaguar Land Rover, said: "We are heartened by Jaguar Land Rover's continued recovery from the impact of the pandemic. In the first quarter, all regional markets achieved significant year-on-year growth, highlighting the strong appeal of Jaguar Land Rover products. Although the current external environment is full of challenges, we will actively adapt and strive to grasp the elements under our control to better cope with various changes in the market. The demand for Jaguar Land Rover products and the success of electrified models justify the direction of the 'Reinventing the Future' strategy, under which Jaguar Land Rover is on a steady path to design empowerment for a new modern luxury future."

Jaguar Land Rover is struggling to cope with the global chip shortage that is common in the industry and predicts that the chip shortage may be further highlighted in the second quarter. Chip supply issues are expected to begin to improve in the second half of fiscal year 2021/22, when Jaguar Land Rover is expected to achieve positive EBIT margins and free cash flow. In addition, the Company's medium-and long-term financial objectives, supported by its "Reinventing the Future" strategy and "Focus Today" initiatives, will remain unchanged, including achieving double-digit EBITDA margins in fiscal year 2025/26.

Despite tight semiconductor chip supply, demand for Jaguar Land Rover products is strong. At present, Jaguar Land Rover has reached 110,000 pre-orders in global retail, a record high for the company, and the total number of orders for Land Rover Defender models alone exceeds 29,000. As the chip supply gradually improves, market demand will be further released.

The continuous growth trend benefits from effective strategic guidance. In February this year, Jaguar Land Rover officially launched a new global strategy "Reinventing the Future". The company will focus on Jaguar and Land Rover, two unique British brands, and define new modern luxury by designing empowerment based on sustainable development.

In China, since the Shanghai International Auto Show in April, Jaguar Land Rover has launched a number of global and Chinese launch models, including the new Range Rover Aurora L and the new Jaguar XFL, etc., fully listening to the Chinese voice, not only realizing the comprehensive upgrade of product strength, but also presenting Jaguar Land Rover's concept of "in China, more China", raising the luxury sense and sportiness to a new height, presenting the unique charm of dual-brand new modern luxury and inherent British fashion.

As the vanguard of the strategy of "reshaping the future", China is leading the realization of global goals in terms of scene-based innovation experience, forward-looking technology cooperation and sustainable profit contribution. In the future, with the cooperation of the world's most resilient, tested, advanced and dynamic supplier system, the Chinese market will continue to develop steadily, win by quality, strengthen Jaguar Land Rover's own system capability and collaborative ecosystem in China, build a future-oriented organizational structure, and give full play to the value of China's supply chain through continuous upgrading.

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