Jaguar Land Rover has reported a £451m quarterly loss for the three months to September, as it recorded £530m in costs from job cuts. Chief executive PB Balaji said the “onslaught of competition” from China meant Britain and the European Union should stop plans for new post-Brexit trade barriers on each other.
Britain's largest automotive employer said revenues rose to £5.9bn between July and September. The job cuts were announced near the end of that period amid tough trading conditions. JLR said it expected the vast majority of redundancies to be voluntary, with 3,000 already confirmed and most workers leaving at the end of November.
Excluding restructuring costs, the company said it scraped into operating profit, but was hurt by falling sales in China and the Middle East. JLR is owned by Indian conglomerate Tata and is targeting growth in the US, where it is negotiating a deal for Stellantis, owner of Chrysler, to manufacture Land Rovers for the first time.
Balaji said on Friday that the EU and UK should stop plans for new post-Brexit trade barriers on each other. The automotive industry is lobbying to delay implementation of post-Brexit “rules of origin” due to take effect on 1 January, which threaten to impose 10% tariffs on UK-EU electric cars that use batteries from Asia. The European Union is also considering “made in Europe” rules that would exclude UK-made cars from subsidies.
"Now is the time for actually fostering this entire electrical ecosystem," Balaji said. "It's so important for us that we all hold hands, stick together and ensure that we get the system to evolve into the world of electrics." He added: "We just need time to ensure all these plans start coming into fruition."
JLR has begun producing electric Land Rovers, starting with the flagship Range Rover built in Solihull, West Midlands. Electric versions of the Range Rover Sport, Defender and Defender Sport are planned. The company also builds the luxury electric Jaguar Type 01, and Balaji said work was under way on a new version of the Discovery.
Many European carmakers are struggling as they invest in electric production while facing competition from Chinese rivals. JLR previously sought to target China for growth but wrote off billions in investments in 2019 as a new wave of Chinese carmakers led to massive overcapacity in the country.
Analysis
Why This Matters
- JLR is one of the UK's largest private-sector employers, and the job cuts signal deepening pressure on the domestic auto industry as it transitions to electric vehicles.
- The CEO's call for UK-EU cooperation highlights the risk that post-Brexit trade barriers could further damage competitiveness against China, especially with the 1 January rules-of-origin deadline approaching.
- The company's pivot to the US and a possible manufacturing deal with Stellantis marks a strategic shift away from its earlier China-focused growth plans.
Background
Jaguar Land Rover, owned by India's Tata Group, has faced a string of challenges in recent years: a cyberattack in 2025, falling sales in China, and the enormous capital demands of electrifying its line-up. The job cuts announced this quarter are part of a cost-reduction programme intended to streamline operations as it launches a range of electric models. The wider European auto industry is lobbying both the UK and EU to delay trade measures that would add tariffs on battery components sourced from Asia.
What to Watch
- The 1 January 2027 deadline for new UK-EU rules of origin on electric car batteries, and whether the two sides agree to delay or modify them.
- Progress on the Stellantis manufacturing deal, which would mark the first time Land Rovers are built outside the UK.
- Sales performance of JLR's new electric models, particularly the Range Rover EV and the Jaguar Type 01, which are critical to the company's turnaround.
Checked
8 claims in this story checked against 1 source: 6 supported.
Show each claim
- Partly supportedJLR had cut 4,000 jobs before reporting its £451m quarterly loss.World news | The Guardian: “JLR said it expected the vast majority of the job cuts to be achieved via voluntary redundancies, with 3,000 already confirmed. Most of those people will leave at the end of November.”
- SupportedJLR reported a £451m quarterly loss for the three months to September.World news | The Guardian: “Jaguar Land Rover has reported a £451m quarterly loss”
- SupportedThe loss came as JLR recorded £530m in costs from the job cuts.World news | The Guardian: “it recorded £530m in costs from the job cuts announced near the end of that period amid tough trading conditions.”
- SupportedBalaji said competition from China meant the UK and EU should stop plans for new post-Brexit trade barriers on each other.World news | The Guardian: “PB Balaji, JLR’s chief executive, said on Friday the “onslaught of competition” from China meant the UK and EU should stop plans for new post-Brexit trade barriers on each other.”
- Partly supportedMost workers affected by the cuts would leave at the end of November.World news | The Guardian: “with 3,000 already confirmed. Most of those people will leave at the end of November.”
- SupportedJLR’s revenue rose to £5.9bn between July and September.World news | The Guardian: “Britain’s largest automotive employer reported revenues rising to £5.9bn between July and September”
- SupportedExcluding restructuring costs, JLR scraped into operating profit.World news | The Guardian: “JLR said it had scraped into profit from its operations if it ignored the restructuring costs”
- SupportedJLR is negotiating a deal for Stellantis to manufacture Land Rovers for the first time.World news | The Guardian: “JLR ... is in the process of agreeing a deal for the Chrysler owner, Stellantis, to manufacture Land Rovers for the first time.”
