Tata Motors‘ Jaguar Land Rover retail sales for the three month period to 30 September 2021 continued to be constrained by the impact of the global semiconductor shortage on production, with wholesales for the period in line with July guidance.

Underlying demand remains strong with order books at record levels.

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Retail sales were 92,710 vehicles, 18.4% lower than the 113,569 sold in the fiscal Q2 last year.

Retails were lower year onyear in most regions, including North America (-15.6%),  China (-6.3%), Europe (-17.0%), and the UK (-47.6%) but were up in the ‘overseas’ region (+10.0%).

Retail sales of all models were lower with the exception of the Land Rover Defender, which retailed 16,725 vehicles, up 70.4%, making it the best selling model in the quarter.

In line with July guidance, Q2 FY22 wholesales totalled 64,032 units(excluding the China JV), down 12.8%.

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As with retails, wholesales were lower in all regions apart from ‘overseas’ (+40.5%) and for most models, except the Defender (up 18% on 14,305 wholesales).

Despite the impact of the semiconductor shortage on production and sales, the company continues to see strong demand for its products with global retail orders at record levels in excess of 125,000 vehicles.

Lennard Hoornik, JLR’s chief commercial officer, said: “The global semiconductor supply issue represents a significant near-term challenge for the industry which will take time to work through. However, it’s encouraging we were still able to grow sales of the Defender in Q2. We are delighted to have a record order book demonstrating the underlying demand for our products which we will satisfy when the semiconductor supply recovers.”

At the start of November, Jaguar Land Rover expects to report unaudited results for the three months ending 30 September 2021.

Looking ahead, the chip shortage remains dynamic and difficult to forecast, the automaker said, but it expects semiconductor supply to gradually ease over about the next year.