JLR sales fall in Q2 FY26: Cyber incident, Jaguar model wind-down, US tariffs hit volumes

The Defender is one of the largest-selling SUVs of JLR globally.

Jaguar Land Rover (JLR) reported a sharp fall in global volumes for the second quarter of FY26. According to the Tata Group-owned company, production stoppages after a cyber incident, the planned wind-down of legacy Jaguar models ahead of new launches, and the impact of incremental US tariffs combined to reduce wholesales and retail deliveries.

For the three months to September 30, wholesale volumes (excluding the Chery Jaguar Land Rover China JV) were 66,165 units, down 24.2% year-on-year (y-o-y) and down 24.2% sequentially. The company said Range Rover, Range Rover Sport and Defender accounted for 76.7% of total wholesales in Q2 FY26, slightly below the prior quarter but up from 67% a year earlier, reflecting prioritisation of higher-margin models.

Retail sales, including CJLR, were 85,495 units, down 17.1% y-o-y and down 8.7% versus Q1 FY26. Retail volumes fell across all regions: UK (-32.3%), China (-22.5%), Europe (-12.1%), North America (-9.0%), Middle East and North Africa (-15.8%), and overseas (-4.1%). The UK was singled out as particularly affected by the Jaguar model wind-down and the September production stoppages, while China saw lower domestically produced CJLR volumes partially offset by stronger imported vehicle sales.

According to JLR, the quarter was hit by multiple, compounding issues. Volumes were impacted since the start of September by the recent cyber incident, with production stoppages affecting wholesales. As expected, the planned wind-down of legacy Jaguar models ahead of the launch of new Jaguar, and incremental US tariffs impacting JLR's US exports, continued to influence shipments through the quarter. The company described the period as "challenging" and noted it prioritised deliveries of its most profitable lines during the disruption.

JLR CEO Adrian Mardell said that it had been a difficult quarter, while outlining the company's immediate response and recovery actions. "It has been a challenging quarter for JLR. In the first two months, our performance was robust and in line with our expectations, against the backdrop of the planned wind-down of legacy Jaguar models and the impact of incremental US tariffs. From the start of September, we have been responding to a cyber incident, which shut down our production. Since then, we have worked with retailers to prioritise the delivery of our world-class vehicles to our clients," he added.

"This morning, we announced the phased restart of JLR's manufacturing operations following the cyber incident. From tomorrow, we will welcome back our colleagues at our engine production plant in Wolverhampton, shortly followed by our colleagues making our world‑class cars at Nitra and Solihull. I would like to thank our customers, suppliers, colleagues and retailers for their commitment, hard work and endeavour in recent weeks to bring us to this moment. We know there is much more to do, but our recovery is firmly underway," he added.

JLR said it will disclose full financial results for Q2 FY26 in November 2025 and reiterated its longer-term Reimagine strategy, which centres on electrification and a target of carbon net-zero across its value chain by 2039.