Jaguar Land Rover (JLR), the luxury car division of India’s Tata Motors, reported a dramatic slump in sales in the third quarter of fiscal year 2026, underscoring the severe business fallout from a major cyber-attack and the impact of rising US tariffs on exports. The British-based manufacturer’s latest sales update has rattled investor confidence, putting pressure on Tata Motors’ stock and highlighting broader challenges facing global automotive supply chains.
According to figures released this week, JLR’s wholesale volumes — sales to dealerships — plunged by 43.3% year-on-year to just 59,200 vehicles in the quarter ending December 31, 2025. Retail sales to end consumers also contracted sharply, falling 25.1% to 79,600 units in the same period. The slump marks one of the most pronounced quarterly performance declines in recent years for the iconic marque.
The company attributed the deterioration largely to a devastating cyber-attack in late August 2025 that forced an extended halt to production at its factories in the UK, Slovakia, Brazil and India. Production lines were suspended through much of September and only returned to normal levels by mid-November, delaying both manufacturing output and the global distribution of vehicles. The interruption was significant enough to push JLR into a near £500 million quarterly loss.
In addition to the cyber disruption, JLR pointed to incremental US tariffs that have weighed on exports to one of its key markets. Retail sales in North America bore the brunt of this, with volumes down 37.7%. Other regions also saw declines, with Europe down 26.9%, China down 18.4%, the Middle East and North Africa off 18.7% and the rest of the world dropping 14.1%. Even in its home UK market, retail volumes dipped 13.3%.
The sales weakness extended across both wholesale and retail segments. Wholesale volumes in North America fell by a staggering 64.4%, and Europe saw a near 48% decline. China’s wholesale units were down 46%, while UK wholesale figures slipped modestly by just under 1%. The steep declines in key global markets reflect the twin pressures of production stoppages and rising trade barriers.
JLR’s leadership has also faced internal upheaval during this challenging period. The design chief behind its latest electric vehicle teaser, which sparked online criticism for not showing the car itself, left the company shortly after the appointment of new chief executive PB Balaji in August 2025. Despite the setback surrounding the new model’s marketing, Balaji has emphasized the company’s long-term strategy even as current volumes fall.
The performance of key models remains a relative bright spot. Range Rover, Range Rover Sport and Defender variants accounted for nearly three-quarters of total sales, up from around 70% a year earlier, suggesting that demand for JLR’s premium SUVs continues to underpin a significant portion of its business even amid broader volume declines.
The market reaction was swift. Shares in Tata Motors and its passenger vehicles arm were hit, with TMPV stock sliding as much as 4% before paring losses, reflecting investor concerns over the outlook for the JLR division. Broader indices such as the FTSE 100 nonetheless showed resilience, buoyed by other corporate earnings and economic indicators, but the JLR story remains a key watchpoint for analysts tracking the automotive sector into 2026.
JLR’s full financial results for the quarter are expected in February 2026, when the company will provide a more comprehensive picture of how the combined effects of cyber-security risks, trade policy shifts and strategic product transitions are shaping its performance.
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