Jaguar Land Rover (JLR), a wholly owned subsidiary of Tata Motors Passenger Vehicles, reported a challenging third quarter as a combination of strategic transitions and external pressures weighed on volumes and financial performance. The December quarter was marked by the planned wind-down of legacy Jaguar models ahead of an all-new Jaguar launch, weaker market conditions in China, and the impact of incremental US tariffs on exports.
Revenue for Q3 stood at £4.5 billion, a sharp 39% decline year-on-year, while year-to-date revenue came in at £16 billion, down 24%. The downturn translated into a loss before tax and exceptional items of £310 million for the quarter and £444 million for the nine-month period, compared with a profit of £523 million in Q3 and £1.6 billion YTD in the corresponding period last year.
Operational disruptions compounded the pressure. Volumes were affected by a cyber incident that temporarily shut down production and delayed the global distribution of vehicles. JLR said production returned to normal levels by mid-November, allowing the company to stabilise operations as it heads into the final quarter of the fiscal year.
Despite the near-term setbacks, management struck a confident note on the outlook. Chief Executive Officer P B Balaji described Q3 as a “challenging quarter,” driven by the cyber-related shutdown, the deliberate tapering of legacy Jaguar models, and tariff-related headwinds in the US. “Thanks to the commitment of our dedicated teams, we returned vehicle production to normal levels by mid-November, and we are focused on building our business back stronger,” he said.
JLR expects a significant improvement in performance in the fourth quarter, supported by normalized production, better supply chain flow, and a clearer product roadmap. While the external environment remains volatile, the company said it has clear plans in place to manage global challenges and maintain strategic momentum.
Electrification remains central to JLR’s long-term transformation. Before the end of the decade, each of its brands will feature a pure electric model, with Jaguar set to become an all-electric brand. At the same time, the company will continue to offer hybrid and internal combustion engine (ICE) vehicles, leveraging the flexibility of its powertrain platforms to align with varying levels of EV adoption across markets.
The coming year is expected to be pivotal. “2026 is set to be an exciting year for JLR as we develop our next-generation vehicles, including the launch of the Range Rover Electric and the unveiling of the first new Jaguar,” Balaji said.
JLR’s global manufacturing and engineering footprint underpins this transition. The company operates two design and engineering sites, two vehicle manufacturing facilities, a components and finishing facility, an electric propulsion manufacturing centre, and a battery assembly centre in the UK. Internationally, it has vehicle plants in China through a joint venture, as well as facilities in Slovakia, India, and Brazil, supported by seven technology hubs worldwide.
As JLR navigates a year of transition marked by short-term financial strain, the company is positioning itself for a sharper recovery driven by electrification, new product launches, and operational resilience in FY26 and beyond.