The development is particularly significant for Tata Motors, given the strong exposure of its British luxury arm, Jaguar Land Rover, to the US market. North America accounted for nearly one-third of JLR’s sales in 2025, driven largely by the US. According to JLR’s FY2024 annual report, the US alone contributed about 22% of global sales, underscoring its importance to the company’s overall performance.
This development comes at a challenging time for JLR, which is already dealing with the fallout from a recent production halt triggered by a massive cyberattack. The disruption weighed heavily on performance, with the Range Rover maker reporting a sharp 43.3% year-on-year decline in wholesale and retail volumes in the third quarter of FY26.
JLR reported wholesale volumes of 59,200 units in Q3FY26, a steep decline of 43.3% compared with the same period last year. Retail sales for the quarter stood at 79,600 units, down 25.1% year-on-year. The company said volumes were adversely affected as production only returned to normal levels by mid-November following the cyber incident.
The automaker noted that both wholesale and retail volumes declined on a quarter-on-quarter as well as year-on-year basis due to these operational challenges. The impact was further compounded by the ongoing planned wind-down of legacy Jaguar models ahead of the launch of the new Jaguar range, which continued to weigh on volumes through the quarter, in line with expectations.
Additionally, JLR highlighted that incremental US tariffs affecting exports to the US market also contributed to the pressure on volumes during the quarter.
Despite the overall volume decline, the company saw an improvement in its product mix. Higher-margin models — Range Rover, Range Rover Sport and Defender — accounted for 74.3% of total wholesale volumes in Q3FY26. This compares with 70.3% in the year-ago period, though it was lower than the 76.7% contribution seen in the previous quarter.At about 9:45 am, shares of the company were trading at Rs 343, lower by 3% from the last close on the BSE.
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