JLR forecasted free cash flow for the third quarter of more than 400 million pounds ($485 million) on Monday, after reporting a 15% increase in wholesale volumes for the period due to strong demand and improved chip supply.
In its earnings report for the second quarter, the British automaker forecasted positive cash flow for the second half of fiscal year 2023 and “near breakeven” for the full year.
Tata Motors, which bought JLR in 2008, had previously set a free cash flow target of 1 billion pounds for the fiscal year.
Meanwhile, wholesales in the December quarter, excluding its joint venture in China, increased 15% year on year to 79,591 units.
Retail sales increased 5.9% year on year to 84,827 units in the three months ending December 31.
The total order book at the end of December increased by around 10,000 to 215,000 client orders from September 30, according to Jaguar, with demand for the New Range Rover, New Range Rover Sport, and Defender accounting for 74% of the order book.
JLR’s performance is critical for India’s Tata Motors because it accounts for nearly 60% of the group’s revenue from operations.
However, wholesale volumes in China, Jaguar’s largest market where it manufactures cars in Changshu, were down 13% compared to the previous quarter due to the impact of COVID-19, the company said in a statement.
JLR is expected to release its third-quarter results on January 25.
Honda Motor Co Ltd and GS Yuasa Corp, on the other hand, announced on Monday that they will collaborate in the high-capacity, high-output lithium-ion battery business and plan to establish a joint venture by the end of this year.
The partners stated that they will collaborate on lithium-ion battery and production method research and development, as well as establish a supply chain for key raw materials and a battery production system.
(Adapted from Investing.com)