Jaguar Land Rover (JLR) has reported a sharp decline in wholesale and retail sales for the third quarter of FY26, reflecting the combined impact of a cyber incident, supply chain disruptions, planned product transitions, and higher US tariffs. The quarter covers the three-month period ending December 31, 2025.
Production at JLR returned to normal levels only by mid-November following the cyber incident. Even after manufacturing stabilised, additional time was required to distribute vehicles across global markets. These delays, along with the planned wind-down of legacy Jaguar models ahead of the brand’s relaunch and incremental US tariffs affecting exports, continued to pressure overall volumes during the quarter.
Wholesale volumes for Q3 FY26 stood at 59,200 units, excluding the Chery Jaguar Land Rover China joint venture. This marked a decline of 43.3% on a year-on-year basis and a 10.6% drop compared to the previous quarter. On a regional basis, wholesale volumes fell across all key markets. The UK saw a marginal decline of 0.9%, while North America recorded a sharp contraction of 64.4%. Europe volumes dropped 47.6%, China declined 46.0%, the Middle East and North Africa region was down 8.5%, and overseas markets fell 50.4%.
Despite the overall decline, the mix of higher-margin models remained relatively strong. Range Rover, Range Rover Sport, and Defender together accounted for 74.3% of total wholesale volumes in Q3 FY26. This was higher than 70.3% in the same quarter last year, although lower than the 76.7% mix reported in the previous quarter. For the financial year to date, JLR’s wholesale volumes reached 212,600 units, down 26.6% compared to the corresponding period last year.
Retail sales also reflected similar pressures. JLR reported retail volumes of 79,600 units in the third quarter, including sales from the CJLR joint venture. This represented a year-on-year decline of 25.1% and a sequential drop of 6.7% from Q2 FY26. Region-wise, retail sales fell 13.3% in the UK, 37.7% in North America, and 26.9% in Europe. China saw an 18.4% decline, while MENA volumes dropped 18.7% and overseas markets declined 14.1%.
For the financial year so far, retail volumes stood at 259,400 units, marking a 19.1% year-on-year decline. The numbers underline the near-term challenges faced by the luxury automaker as it navigates operational disruptions and strategic transitions.
