Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Marketing
November 11, 2022 05:41 AM

Jaguar Land Rover to resume marketing after supply shortages ease

With 205,000 unfulfilled orders, Jaguar Land Rover had paused marketing but production levels for key models have started to return to normal.

Nick Gibbs
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Range Rover 10.jpg

    A slow ramp-up of production and a shortage of chips has made it difficult for Jaguar Land Rover to fulfil orders for models such as the new Range Rover.

    LONDON -- Jaguar Land Rover will resume marketing spending after production levels for key models started to return to normal.

    The automaker had reduced its marketing spending in recent months as it struggled to fulfil orders for in-demand models such the new Range Rover, Range Rover Sport and Land Rover Defender due to chip shortages and a slow ramp-up of production of the new Range Rover models.

    "We really have not marketed these cars or any of our vehicles over the last 12 months because of supply," Chief Financial Officer Adrian Mardell told investors on JLR's quarterly earnings call on Wednesday.

    JLR had 205,000 unfulfilled orders in the July-Sept. quarter, similar to the amount it had the previous quarter. Of those 72 percent were for the Range Rover, Range Rover Sport and Defender, the company said.

    While production is increasing as supply problems ease, orders in the last quarter were 92,000, below JLR's original target of more than 100,000.

    "We are more certain of supply from January," Mardell said. "With supply starting to improve we are also anticipating other investments like fixed marketing to generate more orders, which we are deliberately not generating today.”

    JLR's variable marketing expenses, which included discounts, hit a record low in the last quarter at 1.1 percent of revenue, down from 1.7 percent the previous quarter, JLR figures show. The drop saved the company 29 million pounds ($34 million), according to its figures.

    The biggest drop came in its fourth calendar last year, when variable marketing expenses dropped from 5 percent to 1.6 percent, saving the company 139 million pounds. In the last three months of 2019, JLR's variable marketing expenditure was 7.5 percent of revenue, company figures show.

    The auto industry across the board has been able to save money on all aspects of sales promotion as the squeeze on parts, including semiconductors, cut production and drove up order times. The lack of availability meant there was no need to push cars, either with discounts or through advertising, helping automakers to save significant sums.

    JLR has been squeezed more than most on chips especially, leading it to negotiate directly with chipmakers to secure long-term supply. One chip supplier broke its contract with the automaker in September, which "impacted dramatically" production in the month, Mardell said. Relations with the chipmaker have since been re-established, the company said.

    JLR is focusing its attention on increasing production of its most profitable Range Rover and Range Rover Sport models, and increased Range Rover retail sales helped to grow revenue to 5.3 billion pounds in the last quarter, up 36 percent versus the same quarter the previous year.

    The automaker posted a reduced loss of 173 million pounds from 302 million pounds in the same quarter last year.

    The Range Rover was JLR's third biggest seller for the quarter after the Land Rover Defender and the Range Rover Evoque, with wholesales (sales to dealers) of 12,157, up from 5,936 during the quarter before, according to JLR figures.

    Range Rover Picture Gallery
    Share
    Range Rover 10.jpg

    The fifth-generation Range Rover SUV will be sold with the option of full-electric drivetrain and seven seats for the first time.

    Share
    Range Rover 13.jpg
    Share
    Range Rover 11.jpg
    Share
    Range Rover SWB 11.jpg
    Share
    Range Rover 6.jpg
    Share
    Range Rover LWB 3.jpg
    Share
    Range Rover SWB 7.jpg
    Share
    Range Rover SWB 4.jpg
    Share
    Range Rover LWB 2.jpg
    Share
    Range Rover LWB 9 .jpg
    Share
    Range Rover Int 8.jpg
    Share
    Range Rover 12.jpg
    Share
    Range Rover int 5.jpg
    Share
    Range Rover LWB 1.jpg
    Range Rover 10.jpg
    Range Rover 13.jpg
    Range Rover 11.jpg
    Range Rover SWB 11.jpg
    Range Rover 6.jpg
    Range Rover LWB 3.jpg
    Range Rover SWB 7.jpg
    Range Rover SWB 4.jpg
    Range Rover LWB 2.jpg
    Range Rover LWB 9 .jpg
    Range Rover Int 8.jpg
    Range Rover 12.jpg
    Range Rover int 5.jpg
    Range Rover LWB 1.jpg

    The ramp up in production of the Range Rover helped to boost JLR's revenue per model past 70,000 pounds, CEO Thierry Bollore said on the earnings call.

    However, overall orders were down by around 10,000 compared with the previous quarter following the initial spike in launch orders for the latest-generation Range Rover, Mardell said.

    "We have put no marketing behind that vehicle at all. Advertising or variable marketing," he said. "We are super confident we can stimulate orders above 100,000 [per quarter] going forward once we get supply.

    CARS & CONCEPTS: Sign up for this multipurpose newsletter that covers the biggest moves in Europe’s product market.
    Related Article
    Jaguar Land Rover sees rebound after lowering quarterly loss
    Jaguar Land Rover sets out to train workers, dealers for EV world
    RECOMMENDED FOR YOU
    Renault, Nissan revamp opens up chase for new partners
    Recommended for You
    Renault Nissan logos 2023
    Renault, Nissan revamp opens up chase for new partners
    Britishvolt UK plant sketch
    Britishvolt battery startup set to be bought by Australia's Recharge
    Renault Nissan
    Rebalanced Renault-Nissan alliance brings Renault to U.S. doorstep
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us