Jaguar Land Rover today reported total retail sales of 36,629 vehicles in August 2018, down 4.9% year on year, hit by a 38% fall in sales in China due to ongoing tariff war between the US and China.
However, Chinese retail sales showed a slight improvement compared to last month, when they had fallen 47% on year.
Felix Brautigam, Jaguar Land Rover Chief Commercial Officer, said the company faced “challenges” in its “key markets”.
“The China market is seeing uncertainty following tariff changes and trade tensions although lower tariffs on UK imports should be beneficial over the full year. Concerns over diesel and Brexit continue to weigh on the industry in the UK and Europe although August UK sales were encouraging,” he said.
August retail sales were up in the UK (64.9%), Overseas markets (20.2%) and North America (2.5%), with Europe slightly below last year (3.1%), waiting for last WLTP certifications.
The China market remains unsettled following tariff changes and trade tensions (down 38.1%), although the reduction in duty from 25% to 15% is expected to be beneficial over the full year.
UK sales were boosted by a catch up in WLTP certification of vehicles with only 2 derivatives remaining to be certified in September.
The Worldwide harmonized Light vehicles Test Procedure (WLTP) defines a global harmonized standard for determining the levels of pollutants and CO2 emissions, fuel or energy consumption, and electric range from passenger cars and light commercial vehicls.
“Amid industry – wide delays we made excellent progress to vehicle certification last month. Most of our vehicles are now WLTP certified. Hence, we are confident that our a ward winning vehicle line – up will boost sales as we move into the autumn months,” Brautigam added.
Jaguar retail sales were 11,802 vehicles in August, up 7.7% year on year, driven by the introduction of the E – PACE and I – PACE, as well as XE long wheelbase sales in China.
Land Rover retailed 24,827 vehicles in August, down 9.9% compared to August 2017 as increased sales of the Velar and the refreshed Range Rover were offset by the impact of the lower sales in China on Range Rover Evoque and Discovery Sport in particular.
Jaguar Land Rover total retail sales for the calendar year to date were 390,992, down 2.6% compared to the same period of last year.
“For Jaguar, we are expecting a strong second half of the year. Sales of the Jaguar I – PACE, supported by a wave of critical acclaim by the international media, have only jusy begun and the new E-PACE will join our product line-up in China,” Brautigam added.
“Refreshed Land Rover models, in particular the new Range Rover and Range Rover Sport plug – in variants, have a growing customer base. Strong demand for the Range Rover Velar, 2018 World Car Design of the Year, continues to drive sales.”
