JLR profits under pressure as it battles Chinese rivals and geopolitical 'challenges'

Updated: 09:18 EST, 13 November 2026 Jaguar Land Rover has warned of a squeeze on profits as it battles ongoing geopolitical challenges and heightened competition from Chinese rivals.The brand has largely recovered from last year’s cyber attack, which halted production for a month, but a considerable slowdown in its Chinese market and US tariffs introduced by President Donald Trump continue to weigh on its bottom line. The motoring giant reported a £6million pre-tax profit for the second quarter but booked £530million in restructuring charges and cut its margin forecast.JLR, owned by Tata Motors, cautioned that it expected profit margins to be slightly lower - between 2 and 3 per cent in the current financial year, down from its earlier forecast of around 4 per cent. It said it came ‘in light of ongoing market challenges, geopolitical risks and the exceptional costs recognised in the quarter.’ Squeezed: JLR expects profits to come under pressure as it battles 'market challenges'JLR also pointed to an ‘adverse market mix’ as the ongoing disruption in the Middle East and China shifted sales towards markets such as the UK, which typically generate lower margins. The warning comes as JLR attempts to reposition its Jaguar brand as an ultra-luxury electric carmaker. Last month, it unveiled the Type 01, attracting criticism for its polarising design. Chief executive PB Balaji said job cuts were an ‘important part of the plan’ for the brand’s recovery, as it confirmed its plans to axe 4,000 jobs were progressing ahead of schedule.About 3,000 employees have signed up to leave by March, and the ‘significant majority’ will depart by the end of this month.The number of vehicles sold to car dealers in the second quarter rose to 82,400 from 66,165 in the previous year, and direct sales fell from 85,371 to 79,000.While wholesale sales volumes recovered in the three months to 30 September, revenue slipped to £5.9billion, from £6billion in the previous quarter. This nevertheless represented a 20.9 per cent increase from the previous year, when production was still being disrupted by the cyber attack. Competition from Chinese manufacturers is also putting pressure on prices. Balaji and the entire industry faced a challenge from China's performance, with the arrival of cheap copycat models. He said JLR would take the ‘necessary actions’ to remain competitive.Reports emerged this week that JLR in August had orchestrated a raid on the European offices of Chinese automotive giant BYD, over accusations that its new Ti7 SUV is a copycat of its best-selling Defender SUV.However, JLR suffered a setback on Wednesday after a judge ordered the carmaker to destroy all copies of documents seized, which were deemed not relevant to its copycat claims.Balaji told reporters: ‘Our vehicles are getting built on decades of heritage, engineering excellence, and of course, the capability and the craftsmanship that these cars execute. 'So, therefore, we will do what it takes to protect these, and we do not accept the infringement of our intellectual property.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you