Jaguar Land Rover finish the year significantly higher, but warns on the coming year of trading difficulties.

Jaguar Land Rover said sales rose 7 percent to a record 621,109 vehicles in 2017 but the automaker warned it faces tough conditions in its UK home market due to weakening consumer confidence and a planned diesel tax hike on new cars.

December registrations rose 1 percent to 55,697.

Jaguar sales rose 20 percent to 178,601 over the year and were up 8 percent in December to 15,079. Land Rover volume increased 2 percent to 442,508 in 2017, and rose 4 percent to 40,618 last month.

Since being bought by India's Tata group from Ford Motor in 2008, Jaguar Land Rover has pursued a major turnaround plan to refresh and expand its model lineup and to increase volumes to around 1 million by the turn of the decade.

It said growth in China, its largest market, and in the U.S. helped to offset difficult conditions in the UK and the rest of Europe.

"We have once again delivered year-on-year sales increases thanks to a world-class product range and new models such as the E-Pace and Velar, as well as China-specific models such as the XFL," group sales operations director Andy Goss said in a statement on Monday.

"But we are facing tough times in key markets such as the UK where consumer confidence and diesel taxes will hit us," Goss said.

However, JLR does expect domestic sales to rise this year from 2017's 118,000 vehicles.

Britain's car industry body said last week that 2017 sales across the sector recorded their biggest drop since 2009, blaming plans to increase a levy on new diesel cars from April and weakening consumer confidence in the wake of Brexit.

Like the rest of the UK car industry, Jaguar Land Rover faces uncertainty over possible tariffs or customs delays if Britain fails to secure a favorable Brexit deal before the country leaves the European Union in March 2019.

Britain's finance minister Philip Hammond said in November that the vehicle excise duty would rise from April for those buying almost any new diesel car, potentially costing hundreds of pounds more for top-end models.

Around 90 percent of JLR sales in Britain are diesel models, which compares with around 45 percent globally.

Separately, Goss said JLR will have to decide in the next 12 months whether to build electric cars in its home market. The company's first EV, the I-Pace, will be produced in Austria by contractor Magna Steyr.

Automotive News Europe contributed to this report

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AUTOCAR GAME CHANGER - Ralph Speth takes the top prize for his work at JLR.

The CEO of Jaguar Land Rover, Ralf Speth, has been awarded the top prize at the 2017 Autocar Awards, held in Silverstone’s iconic Wing building and headline-sponsored by premium tyre brand Vredestein.

Speth was presented with the Issigonis Trophy, named after the creator of the legendary Mini, in recognition of his contribution to Jaguar Land Rover’s remarkable transformation following the sale of the brands to Tata Motors in 2008.

The Issigonis Trophy is presented to the individual who has contributed the most to the health, excellence and competitiveness of the European motor industry. Together, the British luxury marques now constitute Britain's largest automotive manufacturer, with the company’s three UK manufacturing plants producing more than 544,000 cars in 2016.

Design supremo Peter Schreyer received the Sturmey Award for his work across the Hyundai-Kia Motor Group, which has included the continual evolution of both the Hyundai and Kia product ranges, in his role as president and chief design officer. Named after Autocar’s founding editor, Henry Sturmey, the award was created to salute innovation and achievement in the motor industry.

Joining Schreyer’s success was Kia UK’s CEO and president, Paul Philpott, who took an Outstanding UK Leader award as the brand continues to achieve record sales following its 25th year in the UK. 

Mike Flewitt, CEO of McLaren Automotive, picked up the inaugural Editor’s Award, for his impact on the company’s success over the past year. Thomas Ingenlath, head of design at Volvo Cars, picked up the Design Hero award – and to celebrate, he showed off a unique Volvo V90, specified to his own brief. 

Tobias Moers of Mercedes-AMG took the Engineering Hero gong, while Alan Gow was named Motorsport Hero for his work both as British Touring Car Championship director and for the Motor Sport Association.

Other industry professionals honoured included Mazda UK managing director Jeremy Thomson and Malcolm Wilson, whose M-Sport business is one of the world's leading private motorsport teams. They joined Paul Philpott in receiving Outstanding UK Leader awards.

Accompanying their respective teams at the Silverstone ceremony, the very best new and used cars were out in force. Nominated by Autocar readers, the Volkswagen Golf GTI was named the most influential car in motoring history.

Not to be outshone, many other ground-breaking cars of today also joined the GTI in the spotlight, as six were named Autocar Game Changers, a category sponsored by Vredestein Tyres – one of the world’s leading tyre manufacturers with a history spanning 100 years.

The winning game changers have been named as the Alfa Romeo Giulia, Aston Martin DB11, Tesla Model X, Renault Zoe, Toyota C-HR and Seat Ateca.

Accolades were handed out for the Porsche Panamera, Bentley Bentayga and McLaren 720S for achieving five-star reviews. The Innovation Award went to the Lamborghini Huracán Performante for its aero-vectoring rear wing, while the Britain’s Best Driver’s Car award went to two cars at the opposite end of the spectrum: the Porsche 911 R and Ford Fiesta ST200. Finally, the Mini Roadster picked up Used Car Hero, awarded in association with Warranty Direct, as named by Autocar’s used car expert, James Ruppert. 

Autocar editor Mark Tisshaw said: “The Autocar Awards unite the industry through a passion for building, selling and driving the very best vehicles on the planet, and the winners named here are a testament to the talent that drives Britain’s flourishing automotive industry.

“Congratulations must go to the winner of the Issigonis Trophy, Ralf Speth, the dedication of whom has played a special part in the evolution of two of the most iconic and cherished brands into the largest automotive force in the UK. What’s most impressive is that this staggering progress that has taken place in less than a decade.”

Prof. Dr. Ralf Speth KBE FREng, said: “I am absolutely delighted to be given this very prestigious award, and I would like to thank the editors of Autocar magazine deeply. Autocar’s standing remains the same as it has ever done: it is a hugely influential title with a long history in this great industry.

“This award is something that I cannot accept just on my own. It is an honour I accept on behalf of all the incredible people who work at Jaguar Land Rover. Together, we have been on quite a journey over the last few years, rapidly expanding our workforce, recruiting and nurturing the best engineers and focusing on innovation, design and customer satisfaction.

“We are the UK’s biggest R&D investor and are always striving to be better than the best. It is a privilege to be leading such an organisation. I expected to do this job for two years, but now it’s seven and I’m still enjoying it. I still find it amazing, contributing to this thing and helping shape it. Thank you, Autocar, for recognising Jaguar Land Rover’s achievements. Here’s to the next few years.”

Autocar Awards Winners 2017

ISSIGONIS TROPHY

Ralf Speth, CEO, Jaguar Land Rover

Awarded to the individual who has contributed the most to the health, excellence and competitiveness of the European motor industry.

STURMEY AWARD

Peter Schreyer, president and chief design officer, Hyundai-Kia Motor Group

Named after Autocar’s founding editor, Henry Sturmey, this award salutes innovation and achievement in the motor industry.

EDITOR’S AWARD

Mike Flewitt, CEO, McLaren Automotive

A new accolade for 2017, the Editor’s Award goes to the person Autocar believes has made the biggest impact on their company's success over the past year.

FIVE-STAR CARS

Porsche Panamera

Bentley Bentayga Diesel

McLaren 720S

READER’S CHAMPION

VW Golf GTI - most influential car in motoring history

DESIGN HERO

Thomas Ingenlath, design vice-president, Volvo Cars

ENGINEERING HERO

Tobias Moers, CEO, AMG-Mercedes

MOTORSPORT HERO

Alan Gow, series director and administrator, BTCC

INNOVATION AWARD

Lamborghini Huracán Performante and its aero-vectoring rear wing

BRITAIN’S BEST DRIVER’S CARS

Porsche 911 R

Ford Fiesta ST200

AUTOCAR’S USED CAR HERO SPONSORED BY WARRANTY DIRECT

Mini Roadster

AUTOCAR’S OUTSTANDING UK LEADERS

Jeremy Thomson, managing director, Mazda UK

Paul Philpott, CEO and president, Kia UK

Malcolm Wilson, managing director, M-Sport

AUTOCAR’S GAME CHANGERS, SPONSORED BY VREDESTEIN

Alfa Romeo Giulia

Aston Martin DB11

Tesla Model X

Renault Zoe

Toyota C-HR

Seat Ateca

The Austrian Red Cross and Discovery by Land Rover combine to produce Project Hero.

• Jaguar Land Rover Special Vehicle Operations creates ‘Project Hero’ – a unique version of new Land Rover Discovery for the Austrian Red Cross
• Red Cross to trial new search and rescue drone that can take off and land on Discovery, even when the vehicle is in motion
• World-first magnetic retention and self-centring drone technology aims to help Red Cross improve communications and cut disaster response times
• Deployment of new Discovery is the latest collaborative project in 63-year global relationship between Land Rover and the Red Cross

Jaguar Land Rover Special Vehicle Operations (SVO) has designed and engineered a bespoke version of the new Land Rover Discovery for use by the Austrian Red Cross. ‘Project Hero’ was presented to the world’s media for the first time today at the Geneva Motor Show.

Project Hero is an advanced communication vehicle, created to support Jaguar Land Rover’s partnership with the International Federation of Red Cross and Red Crescent Societies (IFRC), the world’s largest humanitarian network. SVO collaborated with the Austrian Red Cross to develop a unique Land Rover that will be trialled by their emergency response teams. It is hoped it will help the Red Cross save lives by speeding up response times to disasters. 

Land Rover has supported the Red Cross since 1954 and supplied 120 vehicles to the IFRC for deployment in all corners of the globe. Project Hero is the first with a roof-mounted drone. A fully integrated landing system featuring self-centring and magnetic retention technology is a world-first that enables the drone to land on Project Hero when the vehicle is in motion.

The drone enhances new Discovery’s already outstanding capability. With the drone airborne, live footage can be transmitted to the Red Cross’s emergency response teams, helping them respond more quickly and effectively to landslides, earthquakes, floods and avalanches. Dramatic landscape changes can make maps redundant, which adds to the danger and difficulty of finding and rescuing survivors, so the drone’s bird’s-eye view will allow rescuers to investigate an emergency scene from a safe distance.

John Edwards, Jaguar Land Rover Special Operations Managing Director, said: “Land Rover and the team of engineers and designers at SVO are proud to support the incredible humanitarian work of the IFRC and its members.

“The new Discovery is an outstanding all-terrain SUV, and Project Hero is the optimum combination of enhanced capability and innovative technology. We hope to help the Red Cross save lives in emergency situations.”

Dr Jemilah Mahmood, IFRC Under Secretary General for Partnerships, said: “We are grateful to Land Rover for their generous support over the past 60 years, and are proud of our ambitious global partnership that has transformed the lives of millions of people on four continents. 

“The partnership is supporting communities around the world to become more resilient in the face of natural disasters such as monsoons, flooding and earthquakes. 

“Project Hero combines the best expertise of the Red Cross and Jaguar Land Rover to create a truly unique vehicle, which we hope will be capable of making a difference to rescue operations in the toughest environments.”  

Project Hero is based on the 3.0-litre TD6 engine-powered version of the new Land Rover Discovery. In addition to the unique drone technology supplied in Project Hero, the rear of the interior in this special vehicle also features:

• Heavy-duty sliding floor in the rear load space, which may be deployed as an addition work surface, or to protect the load carried underneath
• Segregation panel behind the rear seats providing additional equipment mounting points
• Strategically positioned LED lighting to aid night vision
• Innovative power supply points which accept multiple plug arrangements from different regions

Project Hero is also equipped with multiple frequency radio equipment enabling contact to be made in a variety of situations.

Project Hero will be based at the Austrian Red Cross training centre in Erzberg, in the mountainous Eisenerz mining area, and in Vienna, for 12 months from June 2017.The drone will be used in simulations to develop new and innovative techniques for disaster relief and on test-runs for complex natural disaster scenarios, including at night and in dense forests. Project Hero will also be used when the Red Cross provides emergency support at times of natural disasters, such as heavy snow or floods, or accidents.

The 5th Gen Discovery has taken 4,000 UK orders and 20,000 worldwide orders as they arrive in dealerships.

• New Land Rover Discovery arrives in Land Rover’s 118 UK retailers this week following its record-breaking reveal in September
• More than 4,000 orders placed prior to customer demonstrations
• Market-first Intelligent Seat Fold Technology for full-size seven-seat configuration
• Prices from £43,495 (OTR), visit www.landrover.co.uk to configure new Discovery

Land Rover’s new Discovery arrives in retailers this week giving customers the first opportunity to test the most versatile SUV on sale today on UK roads. 

Even before the fifth generation of the world-renowned and much loved Discovery reaches retailers, more than 4,000 have already been sold in the U.K. alone with more than 20,000 sold globally.

Jeremy Hicks, Managing Director, Jaguar Land Rover UK said, “It's a special moment when a new vehicle arrives in our retailers and after months of planning, that moment is finally upon us. 

As of this moment our customers can see the new Discovery at their local retailer in the metal. We are very proud of the new Discovery, it does everything its predecessor does and more. 

With increased efficiency, improved versatility and clever technology for the whole family we have seen over 4000 new and existing UK customers order the new model even before its arrival at the retailer.”

Since its star-studded reveal at Packington Hall, Solihull in September when the new Discovery was unveiled against a Guinness World Record-breaking lego backdrop, the new Discovery has been on display as part of a national tour. New and existing customers were invited to Land Rover’s Solihull manufacturing site where the Discovery is built; it then continued to visit all Land Rover retailers nationally. Discovery has also been making an impact at high-profile events and locations including ‘Big Game 9’ at Twickenham in December and the London Boat Show in January.

Outside of these exclusive activities, customers have only been able to experience the new Discovery though a Virtual Reality experience, but as of today, customers can see, touch and drive the UK’s most anticipated SUV.

Retailers have been preparing for the new arrival for some time, undertaking rigorous training at Land Rover’s off-road facility at Eastnor Castle, Herefordshire. Driving new Discovery against a sample of competitor vehicles, the new Discovery was put through its paces on- and off-road with classroom-style sessions demonstrating the vehicle’s capability, versatility and connected technologies.

Today, the new Discovery will be launched to the international press with a comprehensive on- and off-road drive in Utah, USA. The new Discovery will be put to the ultimate test across some of the toughest terrain Utah has to offer. In late March the new Discovery domestic media launch will be held for UK media where they will be invited to experience the 'seven wonders' of Discovery:

1. The Magnificent Seven: every seat is the best seat in the house

Flexible interior provides seven full-sized adult seats, instantly configurable from your smartphone using the world-first remote Intelligent Seat Fold technology

2. A much loved member of the family: keeping you safe for the last 26 years

Semi-autonomous safety technology provides the family peace of mind

Premium interior combines leading design with durable, high-quality materials and space for the whole family

3. King of the hill: unstoppable on all surfaces, all terrains and in all weathers

Land Rover’s full-sized SUV architecture delivers world-beating all-terrain capability

Lightweight aluminium construction saves 480kg, delivering enhanced efficiency and CO₂ emissions from 171g/km

Super clean Ingenium family grows with adoption of 240PS, four-cylinder diesel engine with 500Nm of torque

Towing king: best-in-class 3,500kg towing capacity and semi-autonomous Advanced Tow Assist take the stress out of difficult reversing manoeuvres

4. British creativity: designed with charm & sophistication loved by the world

Design retains key Discovery family cues, adding optimised proportions and sophisticated surfaces

5. Storage addiction: discover the space for everything

Up to 2,406 litres of luggage space with seven seats as standard in the UK and clever storage for 21st century family essentials

6. Connects every generation: Ingenious features that make life easier

Digital Discovery equipped with up to nine USB ports, four 12-volt charging points and an in-car 3G WiFi hotspot for up to eight devices

7. After the roads end: reaching threatened habitats and vulnerable people

New Discovery will continue Land Rover’s work in humanitarian aid and conservation projects around the world

The UK hits a 17 year high for exports with Jaguar Land Rover leading the UK Charge.

1.7 million cars built in the UK in 2016, an increase of 8.5% and the highest output for 17 years. Exports at record levels for second consecutive year as more than 1.35 million cars shipped worldwide. More than one in two cars exported to Europe, our single biggest trading partner, with demand up 7.5%. Growth driven by multi billion pound investments in previous years – not post Brexit bounce.

UK car production achieved a 17-year high in 2016, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT).  1,722,698 vehicles rolled off production lines last year from some 15 manufacturers,1 an 8.5% uplift on total production in 2015 – and the highest output since 1999.2 More cars are now being exported from Britain than ever before, the result of investments made over recent years in world-class production facilities, cutting-edge design and technology and one of Europe’s most highly skilled and productive workforces.  Ten brand new car models began production in the UK last year, nine of them from premium brands which has helped make the UK the second biggest producer of premium cars after Germany and the third biggest car producer in Europe.3   Total committed investment announcements in the automotive sector in 2016 were approximately £1.66 billion across a number of companies. This figure is down from  £2.5 billion in 2015. Production growth was predominantly driven by overseas demand, with global appetite for British-built cars rising by 10.3% to an all-time high of 1,354,216 – a second consecutive annual record. Around eight out of every 10 cars manufactured in the UK is now exported, bound for one of 160 markets worldwide. It was continuing economic recovery across Europe, however, that accounted for the bulk of the growth. Exports to the rest of the EU grew 7.5% to 758,680 and accounted for more than half of all UK car exports.  Furthermore, Europe supplies the majority of components within UK-built vehicles, underlining the critical importance of tariff and barrier-free trade to future UK automotive production. Growth was strong across a number of markets, notably the US – the UK’s biggest export destination after the EU – where demand rose by almost half (47.2%) meaning it now accounts for around 14.5% of all UK car exports.  Notable uplifts were also seen in Turkey, Japan and Canada whilst China, third on the list of export markets, grew by a more modest 3.1% with 88,610 vehicles exported last year. Domestic demand for UK built cars also grew last year, up 2.4% in the year, and the UK remains the second largest car market in Europe, again after Germany.4 One in seven new cars registered by UK buyers is now made in Britain, up from one in eight three years ago. Mike Hawes, SMMT Chief Executive, said, “The tremendous growth in UK production is testament to the global competitiveness of the UK automotive sector.  High class engineering, advanced technology and a workforce committed to quality have helped turn around the industry, making the UK among the most productive places in Europe to make cars.  Significant investment in new plants and products over the past few years has driven this growth, not a post-Brexit bounce. We want trade deals but they must be the right deals, not rushed deals. Failure to do so could damage UK automotive manufacturing beyond repair.” 1. The UK’s 15 manufacturing plants are owned by a range of independent and multi-national-owned companies: Aston Martin (Gaydon); Bentley (Crewe); Caterham (Dartford); Honda (Swindon); Jaguar Land Rover (Castle Bromwich, Solihull, Halewood); Lotus (Norwich); McLaren (Woking); Mini (Oxford); Morgan (Malvern); Nissan (Sunderland); Rolls Royce (Goodwood); Toyota (Burnaston); Vauxhall (Ellesmere Port). 2. 1,799,004 cars were produced in the UK in 1999. 3. New UK models starting production in 2016: Aston Martin DB11; Bentley Bentayga; Jaguar F-Pace; Infiniti Q30; Infiniti QX30; Land Rover Range Rover Evoque Convertible; McLaren 540; McLaren 570; Rolls Royce Dawn; Vauxhall Astra Sports Tourer. 4. ACEA data for 2016.