Jaguar Land Rover (JLR), the luxury carmaker owned by India's Tata Motors, expects to see free cash flow of over 800 million pounds (about $1 billion) for the fourth

quarter, thanks to a 24% rise in wholesale volumes as chip and other supply constraints eased, the company said on Thursday.

Tata Motors had set a target of 1 billion pounds of free cash flow for the fiscal year, and JLR's expected performance for Q4 will help it get closer to that target.

JLR reported that wholesale volumes, excluding its China joint venture, grew by 24% year-on-year, while retail sales rose by 30% in the fourth quarter. Wholesale volumes in China, JLR's biggest market, also rose by 17% compared with a 13% drop in the previous quarter.

At the end of March, JLR's total order book stood at 200,000 units, down 15,000 units from December 31, reflecting higher retail sales in the fourth quarter. The company said it saw strong demand for its Range Rover, Range Rover Sport, and Defender models.

JLR's performance is a crucial factor for Tata Motors, as it contributes almost 60% of the group's revenue from operations.

In the last quarter, Tata Motors returned to profit for the first time in two years due to rising demand for JLR cars and the easing of semiconductor chip supplies.

JLR will report its results for the fourth quarter in May.

These results are a positive sign for JLR and Tata Motors, as the automotive industry has been hit hard by chip and other supply chain disruptions caused by the pandemic. The easing of these constraints is a welcome relief for the company, and the strong demand for JLR's vehicles bodes well for the future. Photo by Navigator84, Wikimedia commons.