Jaguar Land Rover: Profit accelerates but sales stall

Jaguar Land Rover has revealed its pre-tax profit accelerated by 25 per cent during the first half of its financial year despite its revenue flatlining.

The automotive giant has reported a profit of £1.1bn for the first six months of its year to the end of September 2024. However, its revenue remained at £13.7bn.

For its second quarter, Jaguar Land Rover reported a revenue of £6.5bn, down 5.6 per cent year on year, while its pre-tax profit for the three months fell 10 per cent to £398m.

The group said its second quarter drop in profit was because of the “temporary aluminium supply constraint”.

It added that its production and wholesale volumes are expected to recover strongly in the second half of the year “as the aluminium supply situation normalises”.

Jaguar Land Rover said that its full-year revenue guidance remains unchanged at around £30bn.

Jaguar Land Rover hails ‘resilient performance’

Chief executive Adrian Mardell said: “JLR has delivered a resilient performance in Q2, resulting in a 25 per cent increase in first half profits year-on-year.

“Our teams responded brilliantly to the aluminium supply shortages we experienced in the quarter, so we could deliver as many orders as possible to clients.

“We continue to make good progress delivering our Reimagine strategy.

“We have invested £250m so far to prepare our Halewood UK plant for electric vehicle production and with strong global demand for our products, we are well positioned to deliver on our commitments again this financial year.”

For its previous full financial year, Jaguar Land Rover reported record as sales of its luxury Range Rover and Defender models drove growth.

The automotive giant netted a record £29bn in revenue last year, up 27 per cent, while pre-tax profit rose to £2.2bn to the highest level since 2015.

At the time, Mardell hailed a “year of strategic progress” in which JLR pledged to inject £15bn over the next half-decade to ramp up electric vehicle (EV) production.