JLR reports Q1 sales decline due to Jaguar phase-out and US tariffs

Jaguar Land Rover (JLR) reports a 10.7% drop in Q1 FY26 wholesale volumes and 15.1% decline in retail sales, citing the Jaguar phase-out and US import tariffs as major factors.

Jaguar Land Rover (JLR) reported a decline in sales volumes for the first quarter of FY26, with both wholesale and retail figures falling amid a planned wind-down of older Jaguar models and the impact of new US tariffs.

 

Wholesale volumes for the quarter ending 30 June stood at 87,286 units, down 10.7 per cent compared to the same period last year and 21.7 per cent lower than the previous quarter. Retail sales dropped 15.1 per cent year-on-year to 94,420 units and were down 12.8 per cent from Q4 FY25.

 

The company said the volume decline was expected, primarily due to the phasing out of legacy Jaguar models ahead of new product launches and a temporary pause in shipments to the US in April, following the introduction of import tariffs.

 

Among regions, wholesale volumes rose in the Middle East and North Africa by 20.5 per cent, overseas markets by 4.6 per cent, and China by 1 per cent. However, sales dropped in North America by 12.2 per cent, Europe by 13.6 per cent, and the UK by 25.5 per cent, with the latter most affected by the discontinuation of older Jaguar vehicles. 

 

Despite the overall decline, JLR said its more profitable models—Range Rover, Range Rover Sport, and Defender—accounted for a higher share of sales. These three models comprised 77.2 per cent of total wholesale volumes in Q1 FY26, compared to 66.3 per cent in the previous quarter and 67.8 per cent a year ago.

 

The company is scheduled to release its full financial results for the quarter in August.