Tata Motors‘ premium vehicle unit, Jaguar Land Rover Automotive, the UK’s largest vehicle manufacturer, has reported record vehicle sales for the fiscal year ended 31 March, 2017, as revenue and pre-tax profit both increased.
Retail sales rose 16% to 604,009 vehicles, led by the Jaguar F-Pace and continuing strong demand for the Land Rover Discovery Sport.
Retail sales were up year-on-year in China (32%), North America (24%), the UK (16%) and Europe (13%).
Full year revenue rose 9% to GBP24.3bn, due to the higher sales volumes.
Profit before tax was GBP1.6bn, up 3% or GBP53m compared to last year, boosted by GP151m of recoveries during the fiscal year related to the 2015 Tianjin port explosion in China. This was offset by higher marketing costs, depreciation and amortisation and other items.
Fourth quarter revenue rose 10% to GBP7.3bn, profit before tax 17% to GBP676m and EBIT was GBP654m (9% margin).
“These solid results demonstrate the appeal of our products and our ability to deliver strong, profitable and sustainable growth,” said JLR CEO Ralf Speth.
“We are continuing to invest significantly in new models and innovation, as shown by the new Land Rover Discovery, the forthcoming Range Rover Velar and all-electric Jaguar I-Pace, reinforcing our commitment to new technologies and providing new and compelling customer experiences.”
During the financial year, JLR expenditure of GBP3.4bn included the initial construction of the new GBP1bn manufacturing plant in Nitra, Slovakia, and ongoing expansion of its UK facilities, including the start of production of petrol Ingenium powerplants at the Wolverhampton engine centre.
In this financial year, JLY plans spending of GBP4bn on new products and technologies, research and development plus increasing manufacturing capacity.
“We remain committed to our ambitious growth plans despite seasonal variations in demand and global economic challenges,” said CFO Kenneth Gregor.
“We remain focused on maintaining our financial discipline and plan to fund future investment from operating cash. Jaguar Land Rover is pleased to end the fiscal year on a strong note, despite the geopolitical and volatile economic environment. We believe we have strong and exciting product actions and plans to continue to drive profitable volume growth.”