Why Jaguar Land Rover has decided change is needed

Jaguar Land Rover (JLR) has faced a challenging period, with sales falling in its major markets and a devastating cyber-attack crippling production last year. The company has been investing billions in an effort to reinvent itself for an electric future, but it now realizes that a major overhaul is required. One of the main concerns for JLR is the Chinese market, which was once seen as a land of opportunity for western carmakers.

However, the rapid growth of domestic Chinese carmakers and the government's support for electric vehicle development have created intense competition. JLR's sales in China dropped from 146,000 cars in 2017 to 62,400 in the last financial year. Additionally, a slowdown in the Chinese economy and a reduction in sales have made the market more difficult for European brands.

JLR's Chinese sales fell significantly, from 146,000 cars in 2017 to just 62,400 in the last financial year. The company is also facing challenges in the US market, where sales have fallen from over 120,000 cars in 2024 to under 100,000 in 2025. This decline can be attributed to the impact of the cyber attack, the introduction of import tariffs, and uncertainty over their levels.

Furthermore, high energy costs in the UK are putting JLR and its rivals at a disadvantage, as electricity is a fundamental input into modern industrial production. As a result, JLR is planning to cut 4,000 jobs over the next two years in an effort to trim costs and make the company leaner.