Context:

Jaguar Land Rover (JLR) experienced a 15.1% decrease in sales over the three months to June, partly due to the US imposing new tariffs on car imports. In response to these tariffs, JLR paused exports to the US in April but resumed in May after the US and UK reached a deal to lower the tariffs for the first 100,000 UK-manufactured cars imported annually. Additionally, JLR's sales decline was influenced by the planned wind-down of older Jaguar models as the company shifts to new electric models. Retail sales fell by 94,420 units, and wholesale sales dropped by 10.7%, with North America seeing a 12.2% decrease due to the shipment pause. The US market, a significant destination for JLR's premium cars, is the second largest for the UK's industry after the European Union.

Dive Deeper:

• Jaguar Land Rover faced a 15.1% sales decrease in the April to June period, attributed to the threat of US tariffs and the winding down of older Jaguar models.

• In April, JLR paused its shipments to the US following the announcement of a 25% tariff by President Trump's administration, which aimed to boost domestic car production.

• A deal between the US and UK led to a resumed export in May, reducing tariffs to 10% for the first 100,000 cars, while cars beyond this quota would incur a 27.5% tariff.

• Retail sales for JLR fell by 94,420 units over the quarter, and wholesale sales dropped by 10.7% to 87,286 units, with North American sales declining by 12.2% during the shipment pause.

• The discontinuation of older Jaguar models contributed to a 25% drop in wholesale sales in the UK, as JLR plans to introduce new electric models by 2026.

• The US is a key market for JLR, accounting for one in four of its cars, primarily premium and luxury models, making it the second largest market for the UK's automotive industry after the EU.

• The introduction of new tariffs was part of a broader strategy by the US government to encourage car manufacturing within the country, impacting international carmakers like JLR.