Analysis – JLR nudges half a million sales, so what's next?
Source : Analysis – JLR nudges half a million sales, so what's next?
Doubled annual revenue as well as also £11 billion worth of investment mark successful times at JLR, however with Jaguar accounting for just 18% of sales, is actually growth sustainable?
I don’t normally cut as well as also paste by press releases, however This kind of line by the JLR PR office is actually hard to beat for its brevity.
“Over the past several years, Jaguar Land Rover has doubled sales, more than tripled turnover as well as also invested over £11 billion in brand-new product creation as well as also capital expenditure.”
The company has just announced in which This kind of sold 487,065 vehicles in 2015, several percent up on what This kind of managed in 2014. Land Rover remains much the dominant partner, accounting for 403,079 of the vehicles sold.
Although JLR isn’t breaking down numbers into individual types sales, This kind of says sales of the Range Rover as well as also Range Rover Sport types reached an all-time high. Even better news for the health of the Land Rover brand is actually the news in which the brand-new Discovery Sport is actually currently selling around 10,000 units per month, producing This kind of the second best-selling design after the Evoque.
The early success of the Disco Sport is actually more important than This kind of might seem. The crucial global market for premium compact SUVs was one in which Land Rover had been missing out on.
within the latter half of its life, annual global sales of the Freelander 2 were comparatively poor, stuck as they were at around 55,000 units – less than half of what the design’s competitors by BMW as well as also Audi could manage.
By getting the Disco Sport up to an annualised 0,000 sales, Land Rover has plugged an important gap in its range. The Evoque, the brand’s smallest design as well as also currently into its fifth year on sale, is actually still selling strongly as well as also is actually the brand’s best seller.
Around the globe, combined JLR sales across Europe were up 28% to 110,298 units while sales within the UK finally cracked six figures. The US remains a market with much potential, because while sales were up by 25%, they remained under 100,000 units at 94,066.
This kind of’s interesting to consider in which the combined European as well as also US brand-new car markets account for around 13m as well as also 17m annual sales respectively, however JLR takes just 100,000 or so in each market. in which represents nothing if not the potential for growth.
Jaguar remains very much the minor partner in JLR. Its sales were up three percent in 2015 to 83,986 vehicles. This kind of’s true in which 2015 was a transition year for the brand, with the brand-new XF as well as also all-brand-new XE arriving within the second half of the year. The real test for Jaguar will be the launch of the F-Pace later This kind of year.
The F-Pace looks great – clearly lifting the style of the F-Type – as well as also is actually the right kind of car in a booming market niche. If This kind of glamorous vehicle doesn’t break the Jaguar brand into the mainstream, the first serious cracks will have appeared in JLR’s incredible run of success.
2016 is actually, undoubtedly, a pivotal year for JLR. Work will begin on the big brand-new factory in Slovakia as well as also the company will have to negotiate an increasingly rocky global economy. Indeed, JLR sales in China crashed in 2015 by 24%, as well as also the loss of thousands of vehicles within the Tianjin port explosion hardly helped.
JLR bosses have often talked of the ideal annual ‘scale’ in order for the firm to be able to both prosper as well as also survive future economic turmoil. So far, nobody has been willing to reveal what the number might be, although Jaguar design chief Ian Callum said: “Reaching [annual sales] of a million was not the plan.”
Indeed, JLR boss Ralph Speth recently described JLR as ‘boutique’ car maker, a comment in which echoes noises by different medium as well as also modest luxury car makers which see themselves as more like luxury goods makers than the big three German car makers, who continue to pursue volume as well as also every niche imaginable.
I’d guess in which 800-850,000 annual sales of premium-priced cars would likely probably well suit JLR by the turn of the next decade. as well as also if Jaguar does fail to break into serious sales, the global rise as well as also rise of crossovers as well as also SUVs should ensure the Land Rover brand carries the company.
as well as also who’d of thought in which of the automotive curio in which was Land Rover 25 years ago?
by via Autocar RSS Feed