British automotive giant Jaguar Land Rover (JLR) has reported a severe slump in sales for the final quarter of 2025, following a massive cyber attack that brought its production lines to a standstill.
Production Paralysis and Plummeting Volumes
The Tata-owned carmaker confirmed that wholesale volumes collapsed by over 40% to just 59,200 vehicles in the three months leading up to December. Retail sales to customers also fell sharply, dropping by 25% to 79,600 units.
JLR stated that production only managed to return to normal levels by mid-November, months after the initial attack in September. The time required to distribute vehicles globally once they were built further delayed the recovery in sales figures.
A Perfect Storm of Challenges
The company attributed the dramatic decline to a confluence of factors beyond the cyber incident. The planned wind-down of current Jaguar models ahead of the launch of a new generation significantly impacted volumes. Furthermore, incremental US tariffs continued to negatively affect JLR's crucial exports to the American market.
The financial toll has been substantial. For the second quarter of its financial year (to 30 September 2025), JLR reported a pre-tax loss, excluding exceptional items, of £485 million. This starkly contrasts with a profit of £398 million for the same period in 2024.
Recovery Efforts and Broader Industry Impact
Chief executive Adrian Mardell acknowledged the "significant challenges" faced, but insisted the company has made "strong progress in recovering its operations safely and at pace." The cyber attack, described as the costliest in British history, prompted a £1.5 billion government support package for JLR, with the company itself arranging a further £500 million to bolster its supply chain.
The disruption contributed to a wider slump in UK car manufacturing, with data from the Society of Motor Manufacturers and Traders (SMMT) showing a 27.1% drop in national production for September. For the first half of its financial year, JLR confirmed an overall loss of £134 million, compared to a £1.1 billion profit in the first six months of 2024.
