Jaguar Land Rover has reported first quarter revenues of £4.4 billion, racking up a loss of £524 million thanks to supply chain problems and the Covid lockdowns in China.
But it reports orders at record levels and continues to expect significant improvement during the financial year ending 31 March 2023.
Semiconductor-related production constraints were compounded by a slower than expected production ramp up of its new Range Rover and Range Rover Sport.
However, demand remains strong with a record 200,000 client orders, with Range Rover, Range Rover Sport and Defender accounting for more than 60 per cent of client orders.
Chip supply is also expected to gradually improve, supported by new partnership agreements with suppliers.
The Warwickshire automotive brand also said that it expects electrified sales (BEV, PHEV and MHEV) mix to improve to 66 per cent versus 64 per cent in the final quarter of this year.
It is planning to investment £2.6 billion for the full year to deliver its Reimagine product plans, including the rapid electrification of the product portfolio
The Range Rover BEV will be launched in 2024 as part of six new Range Rover, Defender, and Discovery models planned by end 2026 and transformation of Jaguar into an all-electric luxury brand remains on track with first new vehicles to be revealed before end 2024.
Thierry Bolloré, Jaguar Land Rover’s Chief Executive Officer, said: “Our strategy to deliver the future of modern luxury to our clients continues at speed, as we accelerate our plans for an electric-first, brand-led business.
“Although headwinds from the global semiconductor supply and Covid lockdowns in China have impacted our business performance this quarter, I am pleased to confirm that we have a completely reinforced organisation setup to respond to the semiconductor crisis. This is now starting to recover production growth to achieve greater volumes and will allow us to take advantage of our record order book in the second quarter.”