In the face of supply chain disruptions, British automaker Jaguar Land Rover (JLR) reported a slight dip in its Q2 retail sales. The company announced on Thursday that its Q2 retail sales were at 1.03 lakh units, a 3% decrease compared to the same quarter last year.

What Happened: The Tata Motors‘ subsidiary said that the production in the quarter was restricted to about 86,000 units, marking a 7% drop from the same period last year. This decline was due to supply disruptions from a key high-grade aluminium supplier affecting multiple original equipment manufacturers. JLR’s retail sales for the first half of the fiscal year saw a 3% increase year-on-year, amounting to 2.14 lakh units.

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The company’s wholesale volumes for the quarter, excluding the Chery Jaguar Land Rover China JV, were down 10% year-on-year due to the aluminium supply issues. JLR also temporarily held approximately 6,500 vehicles for additional quality control checks, primarily in the UK and Europe. These vehicles are expected to be wholesaled in the second half of the year.

JLR anticipates a strong rebound in both production and wholesale volumes in the second half of the financial year as the aluminium supply situation stabilises. The company will report its full financial results for Q2 FY25 in early November.

The development comes as Tata Motors’ shares have been taking a hit due to declining sales and losing market share.

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