(Reuters) -Jaguar Land Rover expects free cash flow of over 800 million pounds (about $1 billion) for the fourth quarter, boosted by a 24% rise in wholesale volumes as chip and other supply constraints eased, the luxury carmaker owned by India’s Tata Motors said on Thursday.
Tata Motors, which acquired the British car maker in 2008, had set a target of 1 billion pounds of free cash flow for the fiscal year.
JLR said wholesale volumes, excluding its China joint venture, rose 24% year on year, while retail sales grew 30% in the fourth quarter.
Wholesale volumes in China, JLR’s biggest market, rose 17% compared with a 13% drop in the previous quarter, the company said.
Its total order book at March-end stood at 200,000 units, down 15,000 units from Dec. 31, reflecting higher retail sales in the fourth quarter, JLR said, adding that it saw demand for Range Rover, Range Rover Sport and Defender models.
JLR’s performance is key to Tata Motors as it contributes nearly 60% to the group’s revenue from operations.
Last quarter, Tata Motors returned to profit for the first time in two years on rising demand for JLR cars and the easing of semiconductor chip supplies.
JLR expects to report results for the fourth quarter in May. ($1 = 0.8028 pounds)
(Reporting by Aleef Jahan in Bengaluru; Editing by Savio D’Souza)
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Source: The Print
