Jaguar Land Rover sales spike in April despite impending job and production cuts
Jaguar Land Rover’s sales jumped by more than a quarter in April despite its plans to cut jobs and production as demand falters amid Brexit concerns.
The figures
Tata Motors, the parent company of Jaguar Land Rover, reported retail sales of 45,180 vehicles in April 2018, up almost 12 per cent from the year before. It said new models including the Range Rover Velar, Land Rover Discovery and the Jaguar E-Pace were driving its success.
The story in Europe was different, with sales dropping by more than 10 per cent, which the company blamed on the uncertain fate of diesel in the UK and Europe.
China, meanwhile, was the car giant’s strongest market, with retail sales in April rising 29 per cent. Overseas markets recorded 21.3 per cent growth in retail sales. In North America the increase was 2.5 per cent.
Read more: Jaguar Land Rover set for job cuts and production changes amid Brexit fears
Why it’s interesting
The positive sales results defy the gloomy news in April that JLR was planning to cut jobs and production, citing “factors beyond our control”. This has been seen as swipe against the government’s increase in vehicle excise duty on diesel cars – the fuel type 90 per cent of its vehicles are powered by.
Some staff at JLR’s mammoth Castle Bromwich plant, the firm’s Jaguar main assembly line, will be transferred to nearly Solihull, which concentrates on producing Land Rover models. Agency workers in Solihull will not be replaced.
The news is also surprising given that in March demand for JLR’s diesel models fell “considerably”, according to sources. Sales were down 26 per cent in the UK in and 16 per cent lower in Europe. Together, these two geographical areas represent almost half (45 per cent) of UK production.
What Jaguar Land Rover said
Felix Brautigam, Jaguar Land Rover Chief Commercial Officer, said: “It’s pleasing to see a marked improvement in the UK. This is mainly due to two all-new models now being on the market but also an artificially low April 2017 caused by taxation changes. The legislative uncertainty around diesel and the resulting lower demand in the UK and Europe continue to have a negative impact on our business.”
JLR also made a pledge that from 2020 all new Jaguar Land Rover vehicles will be electrified. “We will introduce a portfolio of electrified products across our model range, embracing fully electric, plug-in hybrid and mild hybrid vehicles as wen as continuing to offer ultra-clean petrol and diesel engines,” it said.
Read more: Brexit is not the driving force behind Jaguar Land Rover’s problems