Jaguar Land Rover (JLR) has reported a slump in sales after car supply was disrupted by a fire at a parts supplier and issues linked to the Middle East conflict.
The company, owned by India's Tata Motors, said revenues were also dented by the planned wind-down of several Jaguar models.
Revenue and volume decline
The UK's largest car manufacturer revealed that revenues fell by 9.6% year-on-year to £6 billion for the three months to June 30, driven by a 9.2% decline in car volumes.
Production was heavily disrupted by a range of factors, including a fire at a supplier's factory. JLR briefly paused production for its Range Rover and Range Rover Sport models at its Solihull plant in March after a major fire at a component manufacturer's factory in Norway.
Jaguar model wind-down
Car sales volumes were also impacted by Jaguar's decision to stop production of numerous diesel and petrol models, including its F-Pace. Jaguar is transitioning to focus on electric models as part of a strategy overhaul designed to boost the brand's fortunes.
PB Balaji, chief executive of JLR, said: "Despite the near-term industry challenges, we continue to see strong demand for our brands and look forward to the launch of four sensational new products in the coming months: Range Rover Electric, Range Rover Sport Electric, Range Rover GT and Jaguar Type 01."
Financial impact and outlook
JLR also reported a pre-tax profit, before exceptional items, of £109 million for the quarter, compared with a £351 million profit a year earlier. Profit margins were also knocked by a one-off provision linked to US fuel economy rules, which partially offset reduced US-UK tariffs.
