Jaguar Land Rover recorded a £451m loss in its third quarter despite revenues reaching £5.9bn, primarily due to restructuring costs associated with workforce reductions. The company announced 4,000 job cuts, with 3,000 already confirmed to depart by the end of November, mostly through voluntary redundancies. Without accounting for the separation expenses, JLR indicated its operations would have been profitable during the period.
The automotive manufacturer faced headwinds from declining sales in China and the Middle East, challenges facing the broader European car industry as it contends with competitive pressures from Chinese manufacturers. This situation comes as traditional automakers simultaneously invest heavily in electric vehicle production. JLR’s parent company is the Indian conglomerate Tata.
Chief Executive PB Balaji used the financial announcement to advocate for closer cooperation between the UK and EU on trade matters. He specifically called for both regions to delay implementation of new “rules of origin” requirements scheduled for 1 January, which would impose 10% tariffs on UK-EU electric cars containing Asian batteries. The EU is also considering rules that would restrict UK-manufactured vehicles from accessing certain subsidies.
Balaji emphasized the importance of allowing time for the electric vehicle ecosystem to develop properly, stating that unified support was essential during the industry transition. JLR is pursuing growth opportunities in the United States through a manufacturing partnership with Stellantis for Land Rovers. The company has begun producing electric versions of its vehicles, including the Range Rover from its Solihull facility, with additional electric models planned for its Range Rover Sport, Defender, and Discovery lines. It also manufactures the luxury electric Jaguar Type 01.
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