Britain's primary carmaker, Jaguar Land Rover (JLR), has reported record-breaking revenues amid sustained high demand for its Range Rover and Defender models. However, the company revealed it would meet UK electric car targets through a series of exemptions.
Owned by India's Tata, JLR announced revenues of £13.8 billion between April and September, marking a substantial 42% increase from the previous year. Revenues for the latest quarter reached £6.9 billion, with a year-on-year rise in pre-tax profits to £442 million. Remarkably, the company reported its fourth consecutive profitable quarter, a significant achievement following a challenging period during which it devalued significant investments in China and navigated through the impacts of the coronavirus pandemic and a global shortage of computer chips.
Despite retaining an order backlog of 165,000 cars, a reduction from its peak of over 200,000, JLR emphasised strong demand for its Range Rover SUV, the smaller Range Rover Sport, and the rugged Defender, particularly in the Chinese market.
Adrian Mardell, the company's chief executive, anticipated that revenues would continue to reach new heights in the latter half of the financial year. However, an expected decline in demand is foreseen from April onward.
Initially, Mardell indicated that JLR would face additional penalties related to the UK government's zero emissions vehicle (ZEV) mandate, requiring 22% of total UK sales next year to be electric cars. Nevertheless, JLR later clarified Mardell's statements, asserting the company's anticipation of largely circumventing fines due to loopholes that permit manufacturers to produce plug-in hybrid vehicles.