Tata Motors shares decline 2% amid JLR production restart, Q2 business update

JLR will begin the phased restart of its manufacturing operations on Wednesday starting at the Electric Propulsion Manufacturing Centre (EPMC), where engines are built, and the Battery Assembly Centre (BAC), both located in the West Midlands, UK.

JLR colleagues will also begin to return on Wednesday to the company's stamping operations in Castle Bromwich, Halewood and Solihull, UK, and other key areas of its Solihull vehicle production plant, such as its body shop, paint shop and its Logistics Operations Centre (LOC), which feeds parts to JLR's global manufacturing sites. 

Business updates from the July-September quarter

1. JLR posted a decline in its volumes during the “challenging quarter”, with wholesale volumes falling 24.2% year-on-year (YoY) to 66,165 units, excluding the Chery Jaguar Land Rover China JV (CJLR), in Q2FY26, compared to the same period last year. 

2. The company’s volumes were impacted since the start of September by the recent cyber incident, with production stoppages impacting wholesale.

3. Additionally, the planned wind-down of legacy Jaguar models ahead of the launch of new Jaguars and incremental US tariffs impacting JLR’s US exports also impacted volume, it said in a regulatory filing.

4. Its retail sales witnessed a 17.1% YoY decrease to 85,495 units during the reporting period. Sales volumes for the quarter were down in all markets, comprising the UK (-32.3%), North America (-9.0%), Europe (-12.1%), China (-22.5%), the Middle East and North Africa region (-15.8%), and overseas (-4.1%), compared to the year prior.

5. The total wholesale volumes in Q2FY26 comprised 76.7% of the overall mix of Range Rover, Range Rover Sport, and Defender models, down from 77.2% in the prior quarter. However, it marked a 67% YoY increase, reflecting the prioritisation of JLR’s most profitable models.

The UK was particularly impacted by the planned wind-down of legacy Jaguar models and the cyber incident in September, while a reduction in domestically produced vehicle sales from CJLR in China was partially offset by an increase in imported vehicle sales, JLR stated.

What management said…

Commenting on the business update, Adrian Mardell, CEO of JLR, said, “It has been a challenging quarter for JLR. In the first two months, our performance was robust and in line with our expectations, against the backdrop of the planned wind-down of legacy Jaguar models and the impact of incremental US tariffs.”

Since the beginning of September, the carmaker has been responding to the cyber incident, which shut down its production, and has worked with retailers to prioritise the delivery of its “world-class” vehicles to its clients, Mardell added.

Tata Motors share price

Shares of the automaker have been in the spotlight since the cyberattack. Over a month’s time, shares of Tata Motors have lost over 4%; however, they have gained 17% in six months’ time. 

Last seen at 11:50 AM, Tata Motors shares were trading at ₹689.95 apiece on the National Stock Exchange, tumbling 1.16%.