JLR Reports Sharp Sales Decline Following Cyber Incident and Production Challenges

Jaguar Land Rover has reported a significant drop in sales for the second quarter of fiscal year 2026, with wholesale volumes falling 24.2% year-on-year to 66,165 units amid production stoppages caused by a cyber incident and other operational challenges.

The British luxury automaker's retail sales for the quarter ending September 30 totaled 85,495 units, representing a 17.1% decline compared to the same period last year.

The company attributed the downturn to multiple factors, including a cyberattack that disrupted manufacturing operations from early September, the planned phase-out of older Jaguar models, and the impact of increased U.S. tariffs on exports.

Sales declined across all markets during the quarter. The UK saw the steepest drop at 32.3%, followed by China at 22.5%, MENA at 15.8%, Europe at 12.1%, North America at 9.0%, and Overseas markets at 4.1%.

The UK's performance was particularly affected by both the Jaguar wind-down and the September cyber incident, while China's reduction in domestically produced vehicles was partially offset by increased imports.

Despite the overall volume decline, JLR maintained a strong focus on its most profitable vehicles. The Range Rover, Range Rover Sport, and Defender models accounted for 76.7% of total wholesale volumes, up from 67.0% in the same quarter last year, though slightly down from 77.2% in the previous quarter.

CEO Adrian Mardell acknowledged the difficult quarter but noted that performance had been solid during July and August before the cyber incident occurred. "It has been a challenging quarter for JLR," Mardell said. "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."

On Monday morning, JLR announced a phased restart of its manufacturing operations. The company said it will begin reopening its engine production facility in Wolverhampton, followed by vehicle manufacturing plants in Nitra, Slovakia, and Solihull, UK.

Mardell expressed gratitude to customers, suppliers, employees, and retailers for their support during the disruption, stating: "We know there is much more to do but our recovery is firmly underway."

The company is scheduled to release its full financial results for Q2 FY26 in November 2025.