Jaguar LandRover - comment

The headlines focus on the return to profit as chip shortages ease, but behind the obvious, the same topics still arise. The days of JLR continuing to increase their order book quarter after quarter will end with production ramping up over the next couple of quarters. This bodes well for the coming quarters despite the increase in costs that JLR are experiencing. But away from the mundane quarterly results, the pivot point for Jaguar LandRover is looming closer - the launch of their BEV strategy and ultimately the fruits of the capital expenditure on the electrification across their core models, including newly launched Jaguars. JLR have sufficient liquidity to meet the CAPEX requirements, but the crucial question of whether the electrification is a success is not answered from the quarterly results.

We will update our model once JLR posts full quarterly financials.