JLR Posts First Profitable Quarter Since 2020

JLR has posted its first profit in nearly two years – thanks to easing chip shortages and booming sales.

In the three months to the end of December, JLR made £265 million profit, up from last year’s £9 million loss. JLR’s sales for the twelve weeks to 31 December amounted to £6bn, an increase of 28pc on last year. The quarterly profit compared to a £67m loss for the same period last year.

Adrian Mardell, interim chief executive, said that ‘chip shortages eased’ and ‘production and wholesales increased’.

Wholesale volumes – cars sold to dealerships – hit 80,000 units, the highest since early 2021 and 15 per cent more than last year.

The volumes were mainly driven by strong performances in the North American and European markets, while China lagged behind due to lockdowns that forced dealerships to close.

The healthy figures were reflected by JLR’s parent company, India’s Tata Motors, which announced profits of 29.6bn rupees (£293m) on Wednesday. However, Tata Motors’ CFO PB Balaji said JLR could miss its target of becoming debt free next year as lingering supply constraints threaten its turnaround, despite strong customer demand. . Information for this story sourced from This Is money, and The Telegraph UK.