Jaguar LandRover - comments
Headlines are dominated by the decline in total Jagaur car sales for Q3 and year-to-date numbers but with constraints in the supply chain, JLR are focusing on higher margin vehicles. The headlines are damaging for the brand, but we caution on any knee-jerk reactions as we expect improvement in EBIT driven by higher Range Rover wholesale sales. JLRs issue is limited wholesale inventory and their struggle to meet their customers’ demand.
The business has sufficient liquidity and Q3 numbers, even with semi-conductor shortages, should see improvement. The full Q3 results will be released in early February.