JLR: Still growing faster than peers

However, Audi, which is the second largest luxury car maker globally recorded the lowest growth in Apr-Jun

Jaguar Land Rover (JLR) continued to beat industry growth rate in the April-June period driven by the Jaguar XF, Land Rover Freelander and Range Rover Evoque sales. JLR had recently launched the Sportbrake version of the Jaguar XF and the new Freelander 2.

 

JLR also withdrew the existing Range Rover from the market and replaced it with an all-new Range Rover that was first launched in the US. The company said that the new model sold over 22,000 since launch.

 

Audi, which is the second largest luxury car maker globally, recorded the lowest growth in the April-June period followed by BMW. Mercedes, the smallest of the three luxury car markers (excluding JLR), posted the best growth of the year so far.

 

Though growth of JLR is better than the industry, it is half when compared to last year's average monthly growth of little more than 22 per cent. A key reason for this is the slowdown in China which is JLR's single biggest market having overtaken Europe in the June quarter.

 

While Jaguar sales in China nearly doubled in May, sales of Land Rover fell for the second consecutive month in that country in June to 5,806 units, a fall of 0.1 per cent compared to 5,812 units sold in the same month last year. 

 

A report prepared by HSBC Securities and Capital Markets states, "A macroeconomic slowdown in China and consequent impact on the luxury market is a key concern for JLR/Tata Motors investors."

 

According to the report, JLR currently under serves more than 40 per cent of the addressable market compared to competition such as BMW. However, with an expanding product line-up and increasing dealer base JLR can outperform the market, added the report.

 

JLR sales in financial year 2014 are expected to be driven by Range Rover, Range Rover Sport and the Jaguar F Type. The company is planning eight new launches including face-lifts this year. 

 

In addition, JLR is considering a new manufacturing plant in Saudi Arabia for which it is exploring options. Besides China, JLR is targeting Russia amongst the emerging markets to tap growth opportunities, while also exploring options in Latin America. 

JLR Retails	FY12	FY13	Change (%)
UK	60,022	72,270	20.4
North America	58,003	62, 959	8.5
Europe	68,420	81,027	18.4
China	52,032	77,075	48.1
Asia Pacific	14,003	17,849	27.4
All other markets	53,379	63,489	18.9
Total JLR	305,859	374,669	22.5

Company	Apr-Jun 2012-13	Apr-Jun 2013-14	Change (%)
Jaguar Land Rover	85,758	94,719	10.4
BMW	390,527	422,834	8.3
Audi	387,112	411,000	6.2
Mercedes-Benz	339,022	369,535	9.0
Total	1,202,419	1,298,088	8.0

Note: All figures represent number of vehicles, except percent change
Source: Companies