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Jaguar Land Rover hit by supply issue and drop in European demand

Jaguar Land Rover has reported a drop in sales over the second quarter as supply issues restricted production and demand faltered in Europe and China.

Sales fell by 3% year on year to 103,108 units, the Tata Motors-owned carmaker reported on Tuesday.

Sales across the UK and North America climbed by 29% and 9% over the quarter, but were down by 22% across Europe and 17% in China

This coincided with a 7% drop in production to around 86,000 units, which had been constrained due to disrupted aluminium supplies, according to the company.

Jaguar Land Rover noted the issue was caused by disruption at one “key high-grade aluminium supplier,” which was said to have affected multiple original equipment manufacturers.

“We expect both production and wholesale volumes to pick up strongly in the second half of the financial year as the aluminium supply situation normalises,” the company added.

Over the half year, sales increased by 3% to 214,288 units.

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