Jaguar Land Rover’s |
Jaguar Land Rover’s (JLR) production and sales for the July-September period declined, attributed to earlier disruptions in its aluminium supply chain, the company disclosed this week. The UK-based automaker, under India's Tata Motors, reported a year-on-year drop of 7% in vehicle production to 86,000 units, and a 10% fall in wholesale volumes, totaling 87,303 units for the second quarter of its financial year. Retail sales also slipped by 3%, reaching 103,108 units.
Supply Chain Challenges in Focus
The setbacks in JLR’s performance stemmed from significant supply disruptions attributed to a major aluminium supplier. Novelis, a US-based aluminium roller, faced operational difficulties due to a temporary shutdown at its Sierre plant in Switzerland after severe flooding in late June. While Novelis announced its recovery and resumed production in September, the interruption in high-grade aluminium supply had already impacted JLR and other original equipment manufacturers (OEMs) reliant on its production capacity.
Adding to the challenge, JLR put a hold on roughly 6,500 vehicles in September, primarily in the UK and Europe, to allow further quality control checks. These vehicles are now anticipated to enter wholesale channels during the second half of JLR’s financial year, supporting a possible rebound in output.
Looking ahead, JLR expressed optimism, forecasting a solid recovery in both production and wholesale volumes as aluminium supplies stabilize. However, the company acknowledged that the broader automotive market faces pressures from lukewarm consumer demand, potentially influencing final sales outcomes.
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