Jaguar Land Rover has revealed a slump in sales after the supply of new cars was hit by a fire at a parts supplier and disruption 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 a number of Jaguar models.
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.
It came after car production was heavily disrupted by a raft of factors, including a fire at a supplier’s factor.
JLR briefly paused production for its Range Rover and Range Rover Sport models at its Solihull plant in March after a major fire at the factory of a component manufacturer in Norway.
Volumes of car sales have also been impacted by Jaguar’s decision to stop the production of numerous diesel and petrol-run 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.
“I would like to thank all our people, suppliers and retail partners for their continued dedication, resilience and support.”
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.
