JLR aims to restore profitability through cost controls, stronger cybersecurity and new growth initiatives in China following a difficult FY26.Jaguar Land Rover (JLR) is strengthening its cybersecurity infrastructure, tightening cost controls and pursuing new growth opportunities in China as it seeks to recover from a challenging FY26 marked by a cyberattack, higher US tariffs and continued weakness in the Chinese luxury vehicle market.
As a result of these measures, Tata Motors PV Chairman N Chandrasekaran said JLR will focus on reducing its breakeven volume back to 300,000 units over the next two years while preparing for key launches and improving profitability amid a challenging global operating environment.
In its FY26 annual report, JLR Chief Executive Officer PB Balaji said the company continues to invest in strengthening its IT systems following the cyber incident that disrupted operations and forced a five-week production halt during the year.
“Following the cyber incident, we continue to invest in further strengthening our IT systems, and we continue to drive our Enterprise Missions, to increase efficiency and control our costs,” Balaji said.
The disruption contributed to a difficult year for the British luxury vehicle maker. JLR’s revenue declined 20.9 per cent year-on-year to GBP 22.9 billion in FY26 as production interruptions, incremental US tariffs on exports, luxury taxes in China, higher commodity costs and the planned wind-down of outgoing Jaguar models weighed on performance.
The company is also responding to challenging market conditions in China, one of its key markets, through its joint venture with Chery Automotive.
Balaji said JLR is developing incremental growth opportunities through the new Freelander collaboration with Chery Automotive under the partners’ existing joint venture structure.
“In China, we are taking actions to mitigate against deteriorating market conditions by developing incremental growth opportunities through our new Freelander collaboration with Chery Automotive under our joint venture,” he said.
Alongside operational and market-focused measures, JLR has undertaken organisational changes to strengthen its premium positioning.
In April 2026, the company evolved its operating model to place greater emphasis on its house-of-brands strategy, centred around Range Rover, Defender, Discovery and Jaguar.
Balaji said the revised structure is intended to strengthen each brand’s distinct identity and deepen customer engagement.
“By growing our brands’ distinct identities and values, we will increase the desirability and emotional connection for our customers,” he said.
The strategic reset comes as JLR prepares for a significant product cycle over the coming year.
Balaji said 2026 is expected to be a pivotal year for the company as it advances its next-generation vehicle programme, including the launch of the Range Rover Electric and the unveiling of the first new Jaguar under the marque’s transformation strategy.
