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November 2017 Sales For Land Rover: Up 20%

|Includes: Tesla, Inc. (TSLA), TTM
Summary

Land Rover U.S. sales were up 20% in November, and up 2% year to date.

November was yet again all about the new Range Rover Velar. It quickly became the best-selling Land Rover, reaching 21.7% of sales.

The two most expensive Land Rovers saw sales declines in November, whereas all other less expensive models saw sales increases.

Diesel mix fell to 11.3% from 13.9% year to date.  That was all as a result of the Velar, where diesel is less than 7%.

Land Rover is on track to sell approximately 73,000 units in the U.S. in 2017.  That’s a lot more than Tesla which will most likely be below 50,000.

Land Rover reported U.S. November 2017 month sales:

JAGUAR LAND ROVER ANNOUNCES RECORD NOVEMBER U.S. SALES


Land Rover had a banner 20% growth month in November, helping to take the year to date growth to 2%.  What moved forward so much in November?


Clearly, the all-new Range Rover Velar at 21.7% of sales, is the major contributor.  It had already become Land Rover’s best-selling nameplate in the U.S. market, but this lead became even clearer in November as sales rose from 1,327 units to 1,475 units.


It looks like the Velar took sales from its two larger brothers:  The Range Rover Sport was down 32% in November, and the Range Rover was down 11%.  


The other lesser expensive Land Rovers did a lot better in November, however:


The Discovery Sport?  Up 6%.


The Discovery? (formerly LR4)  Up 63%.


The Evoque?  Up 2%.


So is there further upside for the Velar?  I have no idea.  I suspect, not much.  At almost a quarter of unit sales, how much upside is there for a car that transacts between $50,000 and $90,000?  I think it has a U.S. ceiling of perhaps around 1,500-1,800 per month, but I could be totally wrong about this.


What about diesel?  How well are they selling?  Let’s look at the month of November:


November 2017

total

diesel

%

RR Velar

1475

103

6.98%

RR Sport

1282

190

14.82%

RR

1106

145

13.11%

TOTAL

3863

438

11.34%


As you can see in the table above, the diesel take rate averaged 11.3% between the three models.  Jaguar was at 10% for the month of November.


What about the year to date?


Jan-Nov 2017

total

diesel

%

RR Velar

4459

269

6.03%

RR Sport

17701

2829

15.98%

RR

15794

2168

13.73%

TOTAL

37954

5266

13.87%


As you can see in the table above, the diesel take rate averaged 13.9% for the year thus far.  This is a little higher than Jaguar, which stands at 12.9%.


The main reason that the diesel take rate is going down for Land Rover, is the Velar.  It’s between 6% and 7%, and with it now constituting over 21% of Land Rover’s total U.S. sales, that’s driving down the Land Rover diesel mix.  One can speculate that because the Velar is a new nameplate, and that many of the early buyers are simply more interested in gasoline-type performance at this stage.


On the whole, Land Rover sold 66,759 units in the U.S. for the first eleven months of 2017.  That compares to Tesla (TSLA), which sold 40,810.


Globally, Land Rover sold 329,164 in the first nine months of 2017.  That compares to 73,227 for Tesla.  Not even taking profitability into consideration, which of these two brands should be worth more?

Disclosure: I am/we are short TSLA.

Additional disclosure: At the time of submitting this article for publication, the author was short TSLA. However, positions can change at any time. The author regularly attends press conferences, new vehicle launches and equivalent, hosted by most major automakers. JLR hosted product launch events.