Tata Motors Ltd.TATAMOTORS₹698.05 -2.05%

Jaguar Land Rover (JLR), a luxury car manufacturer and a wholly owned subsidiary of Tata Motors, reported a sharp decline in its sales volumes for the second quarter of the fiscal year 2026 citing a cyber incident that forced a production stoppage, combined with planned model changes.

The company’s wholesale volumes (excluding the China JV) for the quarter fell by 24.2% year-on-year (YoY) and were also down 24.2% compared to the prior quarter, totaling 66,165 units. Retail sales volumes (including the China JV) also decreased by 17.1% YoY to 85,495 units.

JLR attributed the challenging quarter to a confluence of factors, with the most severe impact felt from September onward:

  • Cyber Incident: Production was halted at the start of September following a cyber security breach, which severely impacted wholesales and factory output.
  • Jaguar Model Wind-Down: The planned phasing out of legacy Jaguar models ahead of the brand’s new launch strategy continued to affect volumes.
  • US Tariffs: Incremental US tariffs continued to impact JLR’s exports to the North American market throughout the quarter.

Retail volumes were down across all major markets compared to the previous year, highlighting the global impact of the production disruptions:

  • UK: -32.3%
  • China: -22.5%
  • Europe: -12.1%
  • MENA: -15.8%
  • North America: -9.0%
  • Overseas: -4.1%

The UK market was particularly affected by both the Jaguar model wind-down and the September production shutdowns. In China, lower sales of domestically produced vehicles were partially offset by an increase in imported vehicle sales.

Despite the overall volume drop, JLR maintained its strategic prioritization of its most profitable models. The combined mix of Range Rover, Range Rover Sport, and Defender models accounted for 76.7% of total wholesale volumes in Q2 FY26. While slightly down from the 77.2% mix in Q1 FY26, this mix is significantly higher than the 67.0% recorded in the prior year, reflecting the company’s emphasis on higher-margin vehicles.

Coinciding with the sales report, JLR announced the phased restart of its manufacturing operations following the cyber incident. Production is set to resume at its engine plant in Wolverhampton, followed shortly by its vehicle production lines at Nitra (Slovakia) and Solihull (UK). The company confirmed that recovery efforts are firmly underway.

JLR is scheduled to report its full financial results for Q2 FY26 in November 2025, which are expected to reflect the severe financial impact of the production loss.

Note: The stock price mentioned is as of 3:30 pm.

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