The orderly launch of new products and the electrification strategy have become one of the important factors for Jaguar Land Rover’s improved performance in the quarter.
A few days ago, the British luxury car company Jaguar Land Rover announced its performance in the third quarter of the 2020/21 fiscal year (October to December 2020). Among them, a number of key indicators such as revenue, profit, sales and cash flow have been fully improved.
According to the financial report, Jaguar Land Rover achieved revenue of 6 billion pounds in the quarter, an increase of 1.6 billion pounds over the previous quarter. At the same time, it achieved a pre-tax profit of 439 million pounds, an increase of 374 million pounds from the previous month and a year-on-year increase of 121 million pounds. The profit before interest and taxes (EBIT) increased significantly to 6.7%. In addition, Jaguar Land Rover’s cash flow in the quarter reached 562 million pounds, a record high for the same period in history.
In terms of sales volume, from October to December 2020, Jaguar Land Rover’s global sales reached 128,000 units. Among them, the performance of the Chinese market was particularly impressive, with sales in China increasing by 19.1% year-on-year. In December alone, its sales in China reached nearly 13,000 units, a new one-month high in the past three years, and achieved double-digit year-on-year growth for four consecutive months. At the same time, the profitability of dealers has also been greatly improved.
For this financial report, Jaguar Land Rover Global Chief Financial Officer Adrian Mardell said: “We are pleased with the good profit performance and record cash flow this quarter. This reflects our commitment to sustainable growth and cost reduction. The business focus of efficiency enhancement. Although some markets are still affected by the epidemic, we are pleased to see that the continuous year-on-year growth in sales in the Chinese market and the increase in sales of new Land Rover Defender models are encouraging.”
Specifically, the orderly launch of new products and the electrification strategy have become one of the important factors for Jaguar Land Rover’s performance in the quarter.
According to the official introduction, since the launch of the new Land Rover Defender, the sales volume has reached 16,286 units, a quarter-on-quarter increase of 66%. Currently, Jaguar Land Rover’s 13 product lines are currently on sale globally, including 8 plug-in hybrid models, 11 models equipped with light hybrid technology and 1 pure electric SUV.
At the same time, Jaguar Land Rover continues to launch new products. In November last year, the new Land Rover Defender 90 and the new Jaguar F-PACE made their debut at the Guangzhou Auto Show.
Looking forward, Jaguar Land Rover expects that in the fourth quarter of the 2020/21 fiscal year, it will continue to achieve a considerable pre-interest and tax margin (EBIT) and sufficient free cash flow, and is confident of achieving sustained and healthy freedom in the next few years Cash flow situation.
In addition, Jaguar Land Rover also ushered in a series of favorable policies. Jaguar Land Rover has previously stated that the tariff policy brought about by the Brexit trade agreement reached by the United Kingdom and the European Union in December last year is favorable. It can avoid the risk of tariff collection on vehicles and parts at this stage, and the approval of the new crown vaccine in the United Kingdom is also Will be its benefit. JaguarAll Land Rover global factories and most dealers are in normal operation.
The strong performance of Jaguar Land Rover also promoted the performance and share price of its parent company India Tata Motors to achieve a surge.
In the quarter, Tata Motors’ total operating income was 756.54 billion rupees, a year-on-year increase of 5.5%; consolidated net profit was 29.06 billion rupees, a year-on-year increase of 67.2%.
On the first trading day (February 1) after the announcement of the financial report, Tata Motors’ U.S. stock (TTM.US) closed up nearly 10%, and the stock price has risen nearly 55% since 2021. As of the close of trading on February 3, Tata Motors’ US stocks have risen nearly 80% this year.