Jaguar Land Rover’s annual profit fell by more than 99% after US tariffs and a cyberattack disrupted production and hit sales, the carmaker said in results published this week. The company reported profit before tax and exceptional items of just £14m for the year to March, down from £2.5bn a year earlier.
Revenue also dropped sharply, falling to £22.9bn from the previous year’s level, as the automaker dealt with several pressures at once. The Guardian reported that Donald Trump’s automotive tariffs caused turmoil in JLR’s key export market, while the company also said sales were affected by competition in China. Computer Weekly likewise said the year was shaped by multiple headwinds, including the attack, a more competitive Chinese market and US tariffs.
The cyberattack, which hit on the last day of August, forced JLR to shut down most of its systems and factories for weeks, with disruption continuing into the autumn, according to The Guardian. Computer Weekly said the financial impact continued to be felt even after vehicle production returned to normal levels later in the year. The exact scope of the attack was not detailed in the sources reviewed, but both outlets said it had a major effect on output and finances.
PB Balaji, who became chief executive only weeks after the hack, said JLR had faced “multiple headwinds,” including a pause in production after the cyber incident, but added that the company “ended well” and had “come back resiliently,” according to The Guardian. Computer Weekly quoted the company as saying it recovered well in the fourth quarter as production returned to normal, while fourth-quarter revenue still fell 11% year on year to £6.9bn.
JLR also said it expects new product launches later in the year, including the delayed Range Rover Electric and new electric SUV models, The Guardian reported. The company’s results underline how a cyber incident can ripple through manufacturing, with downtime, delayed output and weaker demand combining to squeeze profits at Britain’s largest carmaker.