AutoBeta(AutoBeta.net)05/20 Report--

Jaguar Land Rover, a falling British luxury car brand, officially released its April sales figures, with the Chinese market falling the most and the single market most abandoned by users.

Jaguar Land Rover sold 39185 vehicles worldwide in April, down 13.3 per cent from a year earlier, according to the data. Of the cumulative sales from January to April, Jaguar Land Rover sold 198101 vehicles globally, down 9.1 per cent from a year earlier, with Jaguar brand sales of 60758 vehicles, down 3.9 per cent year-on-year, and Land Rover brand sales of 137343 vehicles, down 11.2 per cent from a year earlier.

Regionally, Jaguar Land Rover grew in the UK and North America by 12.1% and 9.6%, respectively, but its performance in the UK and North America was offset by declines in other major regional markets. Among them, the Chinese market has become the worst regional market for Jaguar Land Rover.

How serious is it? Almost halved! In April, Jaguar Land Rover sold 7049 vehicles in China, compared with 12970 in the same period last year, down 45.7 per cent from a year earlier. From January to April this year, Jaguar Land Rover sold 28451 vehicles in China, compared with 50276 in the same period last year, down 43.4 per cent from a year earlier.

CFO, chief commercial officer of Jaguar Land Rover, also admitted that April was a difficult month for Jaguar Land Rover due to continued pressure from the Chinese market.

In fact, since the second half of last year, Jaguar Land Rover has experienced a significant decline in the Chinese market, especially since the outbreak of collective rights protection of Land Rover owners at its headquarters in Shanghai due to quality problems. Jaguar Land Rover sales in China have fallen off a cliff. You know, China is Jaguar Land Rover's largest single market in the world, and any sales explosion will affect global performance.

Global sales of Jaguar Land Rover fell 4.6 per cent to 592700 in 2018, mainly due to the Chinese market, which fell 21.6 per cent to less than 115000 vehicles in 2018.

The severe contraction in the Chinese market, coupled with the impact of adverse factors such as Brexit, caused Jaguar Land Rover to post a huge loss of $4.06 billion from October to December 2018 (third quarter). Jaguar Land Rover is controlled by India's Tata Motors, so its huge loss in a single quarter also recorded the biggest loss in Indian corporate history. Jaguar Land Rover has already implemented a reduction plan to reduce paper losses and losses, with plans to save $3.2 billion over the next two years, but it is still in urgent need of money to make up for last year's losses, and Jaguar Land Rover announced plans to raise $1 billion.

Sales in China continue to plummet due to poor global performance, and huge losses are expected from January to March 2019 (the fourth quarter of the 2018 fiscal year), resulting in poor performance of Jaguar Land Rover in fiscal 2018.

In view of this, Tata Motors has also been revealed to be considering the sale of Jaguar Land Rover, Chinese company Great Wall Motors has earlier been reported to be interested in the acquisition, and recently it has been rumored that France's Peugeot Citroen (PSA) has contacted Tata Motors to negotiate related matters.

The continued decline in car sales in China is a huge challenge for all automakers, but Jaguar Land Rover's decline in the Chinese market is still mainly due to word-of-mouth problems. Competition in China's luxury car market has entered a white-hot state, word-of-mouth and product power will gradually become the core indicators of more consumers. Although Jaguar Land Rover is good in both popularity and brand appeal, its brand reputation and product quality over the years have deeply affected the views of Chinese consumers. Consumers don't want to buy a product with a poor reputation and poor quality.

The importance of the Chinese market to Land Tiger Jaguar is self-evident, and the future market environment will be more severe. If Jaguar Land Rover sales still decline off the cliff, it is really very dangerous.

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