Jaguar Land Rover Faces Sales Decline Amid Supply Chain Disruptions

Jaguar Land Rover has reported a decline in sales during the second quarter of the fiscal year, with supply chain challenges impacting production and demand falling in key markets such as Europe and China. The company, owned by Tata Motors, revealed a 3% year-on-year decrease in sales, totaling 103,108 units.

Despite the challenges in Europe and China, where sales fell by 22% and 17% respectively, Jaguar Land Rover saw a positive trend in the UK and North America. Sales in the UK increased by 29%, while North America experienced a 9% rise during the same period.

The decrease in sales coincided with a 7% decline in production, which dropped to approximately 86,000 units. The production issues were primarily attributed to disruptions in the supply of high-grade aluminium, as per the company. Jaguar Land Rover stated that a disruption at a key aluminium supplier had affected multiple original equipment manufacturers.

The automaker remains optimistic about the future, projecting both production and wholesale volumes to recover significantly in the second half of the financial year as aluminium supply issues are expected to stabilize. Over the first half of the year, Jaguar Land Rover experienced a modest sales increase of 3%, reaching a total of 214,288 units.

These updates from Jaguar Land Rover come as the automotive industry, like many other sectors, continues to navigate through post-pandemic supply chain disruptions and shifting consumer demands.