Jaguar Land Rover Sales Drop 10.7% in Q1 Due to Tariff Disruptions and Model Phase-Outs

According to foreign media reports, Tata Motors announced on July 7 that its UK luxury car manufacturer Jaguar Land Rover (JLR) saw a 10.7% decline in sales for the first fiscal quarter (April to June). This drop was primarily attributed to a temporary halt in exports to the U.S. due to tariffs and the gradual phase-out of traditional Jaguar models. During the April to June quarter, Jaguar Land Rover delivered 87,286 vehicles to global dealers, a decrease from 97,755 vehicles in the same period last year. Following U.S. President Trump's imposition of a 25% tariff on all foreign vehicles sold in the American market in April, Jaguar Land Rover suspended exports of cars manufactured in the UK to the U.S., which is one of the group's most promising overseas markets. Jaguar Land Rover does not have a production base in the U.S. Its Range Rover series is manufactured in the UK and is subject to a 10% tariff, while the popular Range Rover Defender SUV is produced in Slovakia and faces a higher 25% tariff. Amid a significant decline in sales in this key market, Jaguar Land Rover is also contending with weak demand in China and slowing sales in Europe, prompting the company to increase investments to boost sales. In its largest market, North America (accounting for one-third of its sales), Jaguar Land Rover's sales dropped by 12.2% in the first fiscal quarter. By brand, Jaguar's sales of luxury sedans, SUVs, and sports cars fell nearly 72%, amounting to just 2,339 units. This decline is a result of the brand's long-term strategic adjustment, with plans for full electrification by 2026 currently underway as traditional fuel models are phased out. Excluding Jaguar's performance, Jaguar Land Rover's overall sales decreased by 5.1%. Jaguar Land Rover is one of the largest car exporters in the UK, accounting for two-thirds of parent company Tata Motors' revenue. The company is set to announce its first fiscal quarter earnings in August. Due to uncertainties in the global automotive industry triggered by U.S. tariff policies, the company revised its EBITDA margin target for the 2026 fiscal year from 10% to 5% to 7% in June.