JLR Sales Dive: Cyber-Attack And Tariffs Hit Hard

Britain's largest carmaker, Jaguar Land Rover (JLR), has faced a challenging end to last year, reporting a significant drop in sales. The luxury vehicle manufacturer saw its figures plummet in the final quarter, largely due to the lingering effects of a major cyber-attack and the impact of US tariffs. The cyber-attack, which struck in late August, forced JLR to halt production across its factories in the UK, Slovakia, Brazil, and India throughout September. This disruption pushed the company into a hefty nearly £500 million loss for the quarter. While manufacturing eventually returned to normal by mid-November, the ripple effect on global vehicle distribution was considerable. Beyond the digital disruption, JLR also pointed to increased US tariffs affecting its exports to North America. The company was also in a transitional phase, winding down older models as it prepared for the launch of its much-anticipated new electric Jaguar. The sales figures paint a stark picture. Wholesale volumes, representing sales to dealerships, crashed by 43.3% to just 59,200 vehicles in the quarter ending December. Retail sales to customers also fell sharply by 25.1%, totalling 79,600 cars. This downturn wasn't confined to a single region; every market saw a decline. North America experienced the steepest retail drop at 37.7%, while the UK saw a 13.3% fall, and Europe was down 26.9%. Despite the overall slump, some models proved more resilient. The iconic Range Rover, Range Rover Sport, and Defender continued to be strong performers, collectively accounting for nearly three-quarters of all sales. The challenges even extended to brand perception, with the company's new electric vehicle facing an online backlash over its teaser trailer. This period of upheaval also saw the departure of JLR's design boss, Gerry McGovern, just months after a new chief executive, PB Balaji, took the helm. The financial fallout was immediate, with shares in JLR's Indian owner, Tata Motors, dropping by as much as 4% following the news. This downturn for JLR stands in contrast to the broader UK car market, which actually saw total sales surpass the 2 million mark last year for the first time since 2019. Notably, Chinese car brands made significant inroads, capturing nearly 10% of new car registrations in the UK, highlighting a shifting landscape while JLR navigates its own unique hurdles. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://www.theguardian.com | Read original article