Jaguar Land Rover Sees 1.1% YoY Growth in Q4 Wholesale Volumes, Closes FY25 with Positive Net Cash Flow

Jaguar Land Rover (JLR), the UK arm of the Indian automotive giant Tata Motors, has unveiled its latest quarterly performance, showcasing a 1% increase in wholesale figures year-on-year (YoY), despite experiencing a 5% decline in retail sales during the fourth quarter of FY25. Additionally, the company proudly announced that it has achieved a net cash positive position, a significant milestone in its financial strategy.

JLR’s Wholesales Performance for Q4 FY25

In the fourth quarter of FY25, JLR reported wholesale volumes of 111,413 units, marking a 1.1% increase YoY and a 6.7% rise from the previous quarter. The company’s performance varied by region:

North America: +14.4%
Europe: +10.9%
UK: +0.8%
China: -29.4%
Overseas markets: -8.1%

These figures illustrate a mixed performance across different markets, with North America and Europe showing particularly strong growth.

Retail Sales Insights

For the quarter ending March 2025, JLR’s retail sales, which include its joint venture with Chery in China, fell by 5.1% YoY to 108,232 units. However, there was a silver lining as retail sales improved 1.8% sequentially compared to the previous quarter. Notably, the company emphasized that a significant portion of its sales—66.3% in Q4 FY25—was attributed to its high-margin models, including the Range Rover and Defender.

Full-Year Financial Overview

When looking at the entire fiscal year ending March 31, 2025, JLR faced a slight decline, with wholesale volumes down 0.1% YoY to 400,898 units and retail sales dipping 0.7% to 428,854 units. A key achievement for JLR was reaching its net debt zero goal, ensuring a positive cash position by the end of the financial year.

Impact of U.S. Tariffs

In a strategic move, JLR has decided to pause shipments to the United States for one month. This decision comes as the company assesses the ramifications of tariffs imposed by U.S. President Donald Trump, which include a 25% tax on foreign-made vehicles effective from April 2. The company aims to collaborate with partners during this hiatus to navigate future trading strategies effectively.

Upcoming Demerger Plans

In a significant corporate restructuring, Tata Motors has announced plans to demerge its business into two distinct entities: one focusing on commercial vehicles and the other on passenger vehicles, including JLR and electric models. A shareholders’ meeting is scheduled for May 6, 2025, to discuss this transformative strategy.

Stock Market Reaction

Tata Motors’ stock has faced challenges recently, plummeting over 11% amid a broader market downturn. The shares reached a 52-week low of ₹542.55 on the BSE, reflecting investor concerns during this volatile period.

By keeping a close eye on these developments, stakeholders can better understand the evolving landscape of Jaguar Land Rover and Tata Motors, particularly as they navigate both challenges and opportunities in the automotive market.