AutoBeta(AutoBeta.net)05/21 Report--

Jaguar Land Rover's 2018 results are noteworthy because of a sharp drop in Chinese sales in the largest single market, which led to a drop in global sales and Jaguar Land Rover, which made huge losses in the third quarter.

According to the company's financial results, operating income in the fourth quarter of 2018 (January-March 2019) was 7.1 billion pounds, profit before interest and tax was 269 million pounds, and net income was 119 million pounds (1.046 billion yuan). Jaguar Land Rover made a profit in the last quarter.

Due to the impact of weak sales in the Chinese market, Jaguar Land Rover posted a huge loss of $4.06 billion in the third quarter, which eventually led to a full-year loss. In fiscal year 2018 (April 2018-March 2019) Jaguar Land Rover had full-year revenue of 24.2 billion pounds, down 6 percent from a year earlier, with a full-year pre-tax profit of 358 million pounds (3.143 billion yuan) and a net loss of 3.6 billion pounds (31.6 billion yuan).

After turning a profit in the fourth quarter after the worst third quarter in history, Jaguar Land Rover said it had a significant impact on cost-cutting and efficiency plans. The company said that the cost reduction and efficiency plan it is implementing has achieved remarkable results, has achieved an improvement of 1.25 billion pounds, and will achieve a total of 2.5 billion pounds in cost, profit and cash flow optimization by March 2020. The plan includes layoffs and temporary shutdowns in British factories.

In terms of sales, Jaguar Land Rover sold 580000 vehicles worldwide in fiscal 2018, down 5.8 per cent from a year earlier. The company saw sales growth in the US and UK, offset by a sharp decline in China, the world's largest single market for Jaguar Land Rover. Sales of Jaguar Land Rover in China have fallen sharply or even halved since the second half of 2018, while Jaguar Land Rover sold a total of 28500 new cars in China from January to April this year, down 43.4 per cent from a year earlier. Sales of Jaguar Land Rover continue to be weak, and even Pan Qing, the new president of the China business, sees no sign of easing.

The sharp decline in sales in China will continue to affect the global performance of Jaguar Land Rover. Jaguar Land Rover CEO Schweder also said that despite losses in China, there is no quick solution to the problem, and Jaguar Land Rover is not prepared to make unlimited sacrifices to expand sales.

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