Sales at Jaguar Land Rover (JLR) fell sharply in the final quarter of last year, as the British carmaker grappled with the fallout from a major cyber-attack, disrupted global production and mounting pressure from US tariffs on vehicle exports.
Wholesale volumes, which reflect sales through dealerships, plunged by 43.3% to 59,200 vehicles in the three months to December. Retail sales dropped by 25.1% to 79,600 cars, highlighting the scale of disruption caused by the attack in late August.
Cyber-Attack Halts Global Production
The cyber incident forced JLR to suspend production across multiple manufacturing sites, including factories in the UK, Slovakia, Brazil and India, throughout much of September. The disruption pushed the company into a quarterly loss of nearly £500m, underlining the financial impact of the attack.
JLR said production at Britain’s largest car manufacturer only returned to normal levels by mid-November, with additional delays caused by the time needed to distribute vehicles to overseas markets.
US Tariffs and Model Changes Add Pressure
Alongside operational disruption, the company cited incremental US tariffs affecting exports to North America as a further drag on performance. The US remains one of JLR’s most important markets, making the impact of tariffs particularly significant for the UK-based group.
The carmaker also pointed to the planned wind-down of older Jaguar models ahead of the launch of its new electric Jaguar range, which temporarily reduced available stock.
Electric Jaguar Launch Draws Scrutiny
The upcoming electric Jaguar model has already attracted attention after an online teaser campaign sparked criticism for not showing the vehicle itself. The campaign even prompted a public comment from Tesla boss Elon Musk, who questioned whether the brand still sold cars.
Despite the reaction, JLR executives defended the strategy as part of a broader repositioning of the Jaguar brand ahead of its all-electric future.
UK and Global Sales Decline
Retail sales declined across all major markets between October and December. In the UK, sales fell by 13.3%, while North America recorded a steep 37.7% drop. Europe declined by 26.9%, China by 18.4%, the Middle East and North Africa by 18.7%, and other international markets by 14.1%.
For the financial year to date, global retail volumes were down 19.1% at 259,400 vehicles.
Wholesale volumes suffered the biggest fall in North America, plunging by 64.4%. The UK saw a smaller decline of 0.9%, while the rest of Europe recorded a drop of 47.6%. Total wholesale volumes for the year so far fell by 26.6% to 212,600 vehicles.
Range Rover and Defender Dominate Sales
Despite the downturn, JLR’s premium SUV models continued to dominate sales. The Range Rover, Range Rover Sport and Defender accounted for nearly three-quarters of total sales, up from just over 70% a year earlier, reinforcing the company’s reliance on its higher-margin models.
Leadership Change and Market Reaction
The results come during a period of leadership change at JLR. PB Balaji took over as chief executive in August, while long-serving design chief Gerry McGovern departed just four months into the new leadership era.
Shares in Tata Motors, JLR’s Indian parent company, fell by as much as 4% following the update before recovering slightly to close around 2% lower.
UK Car Market Shifts as Chinese Brands Rise
JLR’s struggles contrast with broader growth in the UK car market, where total new car registrations exceeded 2 million last year for the first time since 2019.
Chinese manufacturers played a growing role in that recovery, accounting for nearly 10% of all new car registrations in 2025, or around 196,000 vehicles, according to industry figures. The surge highlights intensifying competition facing established UK and European carmakers.
