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

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.