JLR first-quarter profits down by nearly 50 per cent as Midlands car-maker feels the heat from US trade tariffs

First quarter results show revenue fell to £6.6 billion, down 9.2 per cent year-on-year and impacted by significant new US trade tariffs, and a planned winding down of legacy Jaguar models.

However while profits before tax halved year-on-year, falling to £351 million for Q1, it was the firm's 11th successive quarter of profitable trading - amid what it described as "challenging conditions".

Guidance for the 2026 financial year remains unchanged, the group said.

The company was hit hard by the introduction of 27.5 per cent US trade tariffs on UK and EU‑produced cars exported to the US earlier this year, although deals struck this summer will see those tariffs reduced.

The car-maker's outgoing chief executive Adrian Mardell, who announced his retirement last week, welcomed the new trade deal with the US, which saw tariffs on UK produced vehicles reduced  to 10 per cent when it came into force in June. 

A deal thrashed out between the EU and US, due to kick in at the end of this month, will see tariffs reduced to 15 per cent on the firm's EU produced cars.

"Thanks to our talented people and the robust foundations we have built at JLR, we delivered an 11th successive profitable quarter amid challenging global economic conditions," Mr Mardell said.

"We are grateful to the UK and US Governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters, as will, in due course, the EU-US trade deal announced on July 27."

JLR paused exports to the US for around a month in April while it assessed the impact of the tariffs.

Mr Mardell, who was replaced at JLR by P.B. Balaji this week, said the firm was also making good progress on its "Reimagine Strategy", a plan to make the company "net-zero" by 2030 and ensure all of JLR's brands will each feature a pure electric model, while Jaguar will be entirely electric. 

The waiting list for its pure electric Range Rover model, due to be released early next year, surpassed 65,000, the firm said.

The company expects to invest £18 billion in the programme up until 2030, funded by operating cash flows. 

The firm also added that new electric motor and battery lines were now nearing completion at the company's i54 works in Wolverhampton, into which JLR has invested around £350 million to produce electric vehicle components for next-generation electric vehicles  

"Looking ahead, we remain focused on delivering our transformational Reimagine Strategy, including investing £3.8 billion this financial year to support the development of our next-generation vehicles, including our stunning new electric Range Rover and Jaguar models," added Mr Mardell.