Facing COVID-19, JLR is actively making adjustments.

Before the outbreak of COVID-19, the Chinese auto market was a treasure trove of geomantic omen, especially foreign auto companies that rely heavily on Chinese consumers. During the epidemic, the rapidly restoring order at home has become a "life-saving pool" for foreign brands to survive compared to chaotic foreign countries.

According to Jaguar Land Rover's first quarter fiscal year 2020/21 (April to June 2020) financial report data, Jaguar Land Rover's global cumulative sales in this fiscal quarter were 74,067 units, a year-on-year decline of 42.24%. In terms of revenue, Jaguar Land Rover achieved 2.9 billion pounds of operating revenue from April to June. Earnings before interest and taxes lost 413 million pounds, and the profit before interest and taxes reached 3.5%. The year-on-year revenue fell by 1,800 pounds, but due to the overall epidemic factors, Jaguar Land Rover is turning from negative to positive.

Chery Land Rover

Car companies' losses this year are already a high probability event. Jaguar Land Rover responded quickly and couldn't make money from revenue. Then cut costs. From April to June, Jaguar Land Rover achieved 1.2 billion pounds of operational performance improvement and completed the entire fiscal year. 80% of the target. In addition, the company has raised the cost reduction and efficiency increase target for the full fiscal year to 2.5 billion pounds, and the overall cost reduction target of Project Charge+ to 6 billion pounds.

In fact, from Jaguar Land Rover's last fiscal year's financial report, from April 2019 to March 2020, Jaguar Land Rover has shown a stable trend, completing sales of 23 billion pounds, capital reserves of 5.6 billion pounds, and sales in the Chinese market. Six consecutive months of double-digit growth. Thanks to the rapid recovery of the Chinese market, Chery Jaguar Land Rover's wholesale sales in April this year increased by 125.54% month-on-month and 40.99% year-on-year; May sales increased by 24.20% month-on-month and 38.30% year-on-year; June sales also increased. The sales of Chery Jaguar Land Rover in the second quarter increased by approximately 15% year-on-year and 162.61% month-on-month.

The gradual stabilization of Jaguar Land Rover in the Chinese market also shows that in addition to the company's high dependence on the Chinese market. For companies, China is not only a sales market, but more like a haven for their brands. Especially now that the epidemic is raging abroad, it is difficult for foreign companies to make a big splash in markets outside of China.

Jaguar F-Pace

Before the epidemic, Jaguar Land Rover's sales in the Chinese market accounted for 25% to 30% of the total global sales, but this figure has increased to 50% during the epidemic. The importance of China to Jaguar Land Rover can be seen.

In addition to its dependence on the huge domestic consumer market, Jaguar Land Rover also has a certain financial dependence on China. Authoritative organizations have predicted that due to the epidemic, Jaguar Land Rover's sales in 2020 may fall by 15% to 20%, and the company's cash flow will face major challenges.

Land Rover Range Rover Evoque

According to reports, Jaguar Land Rover received a 3-year revolving credit loan of 5 billion yuan from Bank of China, Industrial and Commercial Bank of China, Bank of Communications, Construction Bank, and Shanghai Pudong Development Bank on June 5 this year. Prior to this, Jaguar Land Rover had never conducted any form of financing in China. This action was to lubricate the cash flow of the company and to invest reserve funds for its long-term development in China.

It must be said that China has a pivotal position in the global layout of Jaguar Land Rover. With the increasing proportion of its domestic vehicle sales, China's position as the world's largest single market for Jaguar Land Rover continues to strengthen.

Although China still has huge growth potential, the actual opportunities left to Jaguar Land Rover are limited, and companies are well aware of this.

Affected by the new crown epidemic and the economic downturn, China's auto market was relatively sluggish in the first half of the year. Unlike the decline of ordinary brands, the market for luxury brands showed a slight growth trend. In the first half of 2020, China's luxury car market sales reached 1.04 million units, an increase of 1% year-on-year. But Jaguar Land Rover, one of the luxury brands, cannot be happy too soon.

For Jaguar Land Rover, it seems that there is no local company that can match it in China. However, with the advancement of electrification, China's rapid growth in research and development capabilities for new energy vehicles is obvious to all, and it has even reached the world's leading level in some high-tech fields. Although it does not pose a major threat to Jaguar Land Rover at this stage, if Jaguar Land Rover does not adjust its corporate development direction according to market demand, it will be a matter of snapping the Chinese battlefield.

There are nothing more than two breakthrough points: First, increase new energy. Especially in the Chinese market, there are many high-end unicorn companies. Jaguar Land Rover must combine new energy products to maximize brand influence. Second, avoid blind product launches. Products are updated from generation to generation, and consumers are also updating from generation to generation, taking the current consumer needs as the main research topic of enterprises.

An insider at Chery Jaguar Land Rover once said: It is necessary to continuously iterate and update the product matrix to fully meet the consumer demand for the high-end automotive segment.

Jaguar I-Pace

So far in the process of electric Jaguar Land Rover, Jaguar Land Rover has only launched one and only pure electric model, the Jaguar I-PACE. But Dr. Ralf Speth, CEO of Jaguar Land Rover, once said: "From 2020, all newly released models under its umbrella will be electrified, bringing more electric products to consumers around the world, including BEV, PHEV and mild HEV models."

Land Rover Defender

The epidemic has put its plans on hold. Fortunately, this year is also a big product year for Jaguar Land Rover. On July 24, the new Land Rover Defender was officially launched on the opening day of the Chengdu Auto Show. And Jaguar Land Rover will also launch two models one after another, namely: Land Rover Discovery and Jaguar F-PACE mid-term facelift.

Land Rover Discovery Sport