Maybe people just don't love SUVs as much as automakers think?
SUV sales have been booming lately, so it may come as a surprise to hear that Land Rover just experienced its slowest growth for deliveries in three quarters. Land Rover exclusively builds SUVs, so maybe people aren't as excited about buying them as well all thought? According to parent company Tata, that's not the case. It says Brexit is to blame. Profits from Jaguar Land Rover have fallen from around $650 million to $401 million over the past three months. Land Rover deliveries only grew 4%, but deliveries for Jaguar surged by 76% over last year.
Jaguar's huge boom in demand can be attributed to the new XE sedan and F-Pace SUV, the latter of which launched in the US this May. In a statement, Tata said, "The operating performance in the quarter reflects the overall higher wholesales, offset by adverse foreign exchange impact of 207 million pounds including revaluation of 84 million pounds, mainly euro payables resulting from depreciation in the pound following the Brexit vote." Although profits are down, new models like the XE and F-Pace should be hot sellers that help the brand move forward. As for Land Rover, it makes only SUVs which the world is currently obsessed with, so it will end up being OK. We think that JLR will make it through Brexit unscathed.