Jaguar Land Rover (JLR) has reported a severe slump in sales for the final quarter of last year, with wholesale volumes plunging by 43.3%, after a devastating cyber-attack crippled production and US tariffs impacted exports.
Production Halted by Major Cyber Incident
The luxury carmaker, Britain's largest, was forced to suspend manufacturing at its factories across the UK, Slovakia, Brazil, and India throughout September following the cyber-attack in late August. This widespread shutdown pushed JLR into a quarterly loss of almost £500 million.
Production only returned to normal levels by mid-November, and the company faced further delays in distributing vehicles globally. The attack's impact was profound, contributing significantly to a fall in retail sales of 25.1% to 79,600 vehicles and a drop in wholesale volumes to 59,200 for the quarter to December.
Multiple Headwinds: Tariffs and Model Transitions
Beyond the cyber disruption, JLR cited "incremental US tariffs impacting JLR's US exports" as a key factor in the sales decline. North America saw the sharpest fall, with wholesale volumes down 64.4% and retail sales dropping 37.7%.
The company was also managing the planned wind-down of older Jaguar models ahead of the launch of the new electric Type 00. However, the reveal of this much-anticipated vehicle faced an online backlash over a teaser trailer that did not show the car, prompting Tesla CEO Elon Musk to mockingly ask, "Do you sell cars?"
Leadership Changes and Global Sales Drop
The period also saw a significant leadership shift. JLR's design chief, Gerry McGovern, who insisted the brand had shown "fearless creativity," departed just four months after the new chief executive, PB Balaji, took charge in August. Balaji was previously the finance chief at JLR's Indian owner, Tata Motors.
Retail sales fell in every major market between October and December:
- UK: down 13.3%
- Europe: down 26.9%
- China: down 18.4%
- Middle East & North Africa: down 18.7%
For the financial year to date, retail volumes fell 19.1% to 259,400 units. The Range Rover, Range Rover Sport, and Defender models proved resilient, making up nearly three-quarters of all sales.
Market Reaction and Industry Context
The news triggered a fall in shares of parent company Tata Motors, which dropped by as much as 4% before recovering slightly to trade 2% lower.
JLR's struggles contrast with broader UK car market trends. Preliminary figures from the Society of Motor Manufacturers and Traders indicate that total new car registrations in the UK surpassed 2 million in 2025 for the first time since 2019. This growth was partly driven by the rising popularity of Chinese brands, which accounted for 9.7% of the market, or approximately 196,000 vehicles.
