Amid the increasing challenges in the automobile industry, especially in Britain, luxury UK vehicle manufacturer Jaguar Land Rover released on Tuesday its retail sales data for February, posting new record sales reached for the month by an increase of 9.3% from the prior year.
The UK luxury auto company reported total sales of 40,978 vehicles sold during the month, up by 9.3% from February 2016. JLR saw more growth from its models Jaguar F-PACE, XE, Land Rover Discovery Sport, Range Rover, and Evoque.
Jaguar Land Rover attributes the strong February sales growth to an impressive growth exhibited in China with an increase of 40.4% in volume. Meanwhile, for other areas, JLR saw a 16.2% growth from North America and 14.2% in the UK; however, European markets only experienced a modest increase by 1.6%, while other markets reported a 6.5% increase.
Under the Jaguar brand, total retail sales in February reached 12,203 vehicles, which indicated an increase of 81.1%, from the strong sales of the XE at 3,309 vehicles sold and F-PACE at 5,323 vehicles.
Land Rover retails sales came in at 28,775 vehicles sold last month, which was 6.4% down from a year ago. The main driver behind the lagging growth of Land Rover sales were partially due to the run-out of the Land Rover Defender and Discovery, which were initially offset due to the introduction of newer models of Land Rover Discovery.
With the all-new release of the updated Land Rover Discovery, the auto company has expressed a more optimistic outlook for the months to come.
“The all-new Land Rover Discovery went on sale in February and the already strong demand makes us optimistic that it will more than outweigh sales of the previous model,” said Andy Goss, Jaguar Land Rover Group Sales Operations Director.
Last March 2, JLR announced its Canadian sales at 931 vehicles sold, showing a 14% increase year-over-year. The Jaguar brand saw a 238% increase, with 318 units sold, while Land Rover brand sold 613 vehicles during the month, wherein Range Rover Sport sold around 235 units and Range Rover at 147 units, up by 58% year-over-year.
JLR on Brexit
Meanwhile, Jaguar Land Rover CEO Ralf Speth expressed his concern over the trade relations of UK with the European Market after Brexit talks. Speth said that the UK luxury auto company relies heavily on continued free and fair trade with the EU’s tariff-free single market.
“Europe for Jaguar Land Rover is the most important market. It’s important for the complete export industry to have a free and fair trade. Lowering (the) corporate tax, but increasing border tax will really cause us difficulties,” said Speth. Still, the JLR chief executive did not mention any plans for the auto company to open facilities in the US.
In January 2017, Jaguar Land Rover was announced as the biggest car manufacturer in the UK for the second year in a row. The auto company holds the 30% of all domestic car production from last year, setting a record in 2016 of 1,727,471 vehicles in total. JLR’s Jaguar and Land Rover production within 2016 also climbed 8% year-on-year.
Despite the impressive record sales from Jaguar Land Rover’s February data, its parent company Tata Motors Ltd.(NYSE: TTM) saw a quiet trading on Tuesday. The stock opened at $34.71 per share and closed at $34.66, down by 0.43% or $0.15, with a dividend yield of 0.04% and market value at $22.41 billion.
The stock rallied last March 2 when JLR posted another record sale in Canada region from $33.84 and soaring to $34.81.
On the Bollinger band indicator, the stock recently just broke out of its squeeze from the first half of February when TTM stock plunged last February 14. Its Relative Strength Index was at 43.5293 Neutral rating.
TTM stock plummets when Jaguar Land Rover third quarter earnings call reported an extreme profit drop by 97%, wherein margins fell and costs surged. The stock then plunged as much as 8% within the last few hours of the trading session.
In most recent analyses, the stock currently has a ‘Strong Sell’ rating for short-term traders, but has a ’Buy’ rating for a longer term.
Despite the third quarter plunge in profits, Jaguar Land Rover still exhibits a promising 2017 performance, as the auto company has exemplified record retail sales in February.
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