Jaguar Land Rover Sales Slump Amid US Export Pause and Transition to Electric Models

Strategic Insights -

Jaguar Land Rover (JLR) has revealed a sharp decline in sales over the past three months, driven in part by a temporary pause in exports to the US and the planned wind-down of older Jaguar models. The company's retail sales dropped by 15.1% to 94,420 units, while wholesale sales declined by 10.7% to 87,286 units compared with the same period last year. The sales slump was largely attributed to the pause in shipments to the US in April, following the introduction of new tariff plans by the US government. However, the company has since restarted exports to the US after a deal was struck between the US and UK, which will see a lower tariff applied to the first 100,000 UK-manufactured cars imported into the US each year.

Key Takeaways:

  • JLR's retail sales slid by 15.1% to 94,420 units over the three months to June, while wholesale sales dropped by 10.7% to 87,286 units.
  • The significant fall in sales was partly driven by the pause in shipments to the US in April, following the introduction of new tariff plans by the US government.
  • The company restarted exports to the US in early May amid hopes that a trade deal for the sector would be struck.
  • JLR halted new shipments to the US in April due to the additional 25% tariff on car imports, but this was later reduced to a 10% tariff under the new trade deal.
  • Wholesale sales in North America dropped by 12.2% year-on-year after the pause in exports.
  • The planned cessation of legacy Jaguar models in the UK resulted in a 25.5% drop in wholesale sales.
  • Range Rover, Range Rover Sport, and Defender models represented 77.2% of all wholesale volumes, compared with 67.8% a year earlier.
  • JLR will shift production to new electric models, which are set to go on sale in 2026.

Statistics:

  • 15.1%: Decline in JLR's retail sales over the past three months.
  • 10.7%: Decline in JLR's wholesale sales over the past three months.
  • 94,420: Number of retail sales over the past three months.
  • 87,286: Number of wholesale sales over the past three months.
  • 12.2%: Decline in wholesale sales in North America after the pause in exports.
  • 25.5%: Decline in wholesale sales in the UK due to the planned cessation of legacy Jaguar models.
  • 77.2%: Percentage of wholesale volumes represented by Range Rover, Range Rover Sport, and Defender models.
  • 67.8%: Percentage of wholesale volumes represented by Range Rover, Range Rover Sport, and Defender models a year earlier.
  • 2026: Year in which JLR's new electric models are set to go on sale.

Sources:

  • PA Media
  • Jaguar Land Rover (JLR) press release