Jaguar Land Rover sees 15.1% drop in sales amid production shifts

In the UK, Jaguar Land Rover, owned by Tata Motors, reported a significant decline in vehicle sales during the quarter leading to June 2025. The company’s retail sales dropped by 15.1%, totaling 94,420 units. A substantial portion of this decline was attributed to a temporary halt in exports to the United States and the planned cessation of older Jaguar models, which has left many consumers unable to purchase available vehicles. Meanwhile, wholesale sales also plummeted by 10.7% to 87,286 units compared to the previous year. The pause in U.S. shipments was primarily instigated by new tariff plans implemented by the U.S. government aimed at enhancing domestic car production. In April 2025, the Trump administration announced a 25% tariff on car imports, prompting Jaguar Land Rover to suspend shipments temporarily. However, negotiations led to an agreement that established a lower 10% tariff on the first 100,000 UK-manufactured cars imported annually into the U.S. Despite resuming exports in early May, Jaguar Land Rover faced continuing struggles with sales, with wholesale figures in North America falling by 12.2% year-on-year. Further complicating matters, wholesale sales in the UK fell sharply by 25.5%, heavily influenced by the discontinuation of older Jaguar models, which were phased out as part of a transition towards new electric vehicle production. Specifically, Jaguar ceased sales of its legacy models in the UK late last year. The company's shift to electric vehicles is expected to produce new models slated to launch in 2026, demonstrating a strategic pivot to align with the increasing demand for electric cars. Nonetheless, this transition phase has led to a reported lack of availability and diversity in existing vehicle offerings, which has negatively impacted consumer purchasing decisions. The overall situation puts Jaguar Land Rover’s future in a precarious position. The brand has been regarded as facing potential obscurity as it struggles to regain its footing amid fierce competition and evolving market dynamics. Industry analysts and employees express concerns over the long-term viability of Jaguar, particularly as the legacy models that once appealed to many consumers are no longer available, and there's uncertainty about how the forthcoming electric lineup will resonate with existing fans and attract new buyers.