Carmaker Jaguar Land Rover gets set to accelerate its transition to electric vehicles as it reports a 15% surge in annual pre-tax profits to £2.5bn. Tony McDonough reports
Automotive giant Jaguar Land Rover (JLR) has ended its fiscal year on a high, reporting big rises in both quarterly and full-year profits.
JLR, which employs more than 3,500 people at its car assembly plant at Halewood in Merseyside, said pre-tax profits in the three months to March 31, 2024, the final quarter of its financial year, hit £875m – up from £661m a year ago.
This was despite revenues in the quarter falling 1.7% to £7.7bn year-on-year. Full-year revenue was also flat at £29bn. However, full-year pre-tax profits surged 15% to £2.5bn.
Earlier in May JLR welcomed the new trade agreement between the UK and US which saw tariffs on automotive imports into the states set at 10%. Only weeks earlier President Trump had announced a 25% tariff on new cars.
This set alarm bells ringing in the UK automotive sector and especially at JLR for which the US is a key market. JLR temporarily suspended exports to America following Trump’s announcement but resumed them shortly before the trade deal was agreed.
The company said the increase in profitability year‑on‑year reflects higher volumes and a reduction in depreciation and amortisation, partially offset by an increase in variable marketing expense.
JLR also welcomed the UK Government’s changes to the Zero Emission Vehicle Mandate which it says will support JLR’s compliance and investment profiles in the short‑ to medium‑term, ahead of “significant changes” to its EV product availability.
In its trading update on Wednesday, the company said: “Looking ahead, we expect investment spend to remain at £18bn over a five‑year period and funded by operational cash flows.”
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Chief executive Adrian Mardell added: “JLR has ended the year with strong annual and quarterly earnings, including delivering our 10th consecutive profitable quarter and our net debt zero target.
“We have achieved record sales of Defender, revealed the stunning Jaguar Type 00 and we are preparing to launch the wonderful Range Rover Electric.
“This strong and consistent performance, the commitment of our people, partners and clients and the appeal of our luxury brands will support our response to current global economic challenges including the evolving global trading environment.”
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