Jaguar Land Rover (JLR) has recorded its highest annual profit in ten years, posting pre-tax earnings of £2.5 billion for the year ending March 2025. The British carmaker, owned by India’s Tata Motors, reported a final quarter profit of £875 million, despite concerns over US trade tariffs and a dip in sales.
While annual revenues held steady at £29 billion, retail sales volumes were flat at 428,000 vehicles following a 5% decline in the final quarter. However, improved operating margins helped JLR eliminate its net debt, closing the year with a net cash position of £278 million.
JLR Chief Executive Adrian Mardell described the results as a “milestone” for the company. Addressing concerns about trade friction with the United States, he said: “We are confident that the implications [of US tariffs] will be net-net positive.”
The results come as the company accelerates its transition to electric vehicles. Testing has begun at JLR’s Solihull plant ahead of the launch of the all-electric Range Rover in 2026. Meanwhile, development continues on the all-electric Jaguar — known internally as Type 00 — with production expected to begin in late 2025, although sources suggest this could be delayed depending on market demand.
JLR also confirmed plans to revive the Freelander name as part of its EV expansion. The new electric Freelander will be built in China, with the potential to export models to the UK and other global markets.
The carmaker’s financial performance comes in spite of a temporary suspension of US exports earlier this year, as it awaited clarity on proposed American tariffs. A 10% blanket tariff on UK-built vehicles now appears imminent, but JLR said it had pre-shipped inventory to mitigate the impact. The company exports 75,000 to 85,000 vehicles annually from the UK to the US, keeping it within the proposed 100,000-unit cap.
However, the firm acknowledged challenges posed by the 25% tariff on EU-made vehicles, which will impact its Defender model built in Slovakia. The Defender accounts for over a quarter of JLR’s global sales, with 111,000 units sold each year.
Despite the trade headwinds, Mardell said there were no immediate plans for job cuts or to establish a US manufacturing site, emphasising a “wait-and-see” approach.
Looking ahead, JLR’s leadership remains bullish on the company’s trajectory, citing strong financials, a robust EV pipeline, and a cleared balance sheet as key assets in navigating the fast-evolving global auto market.
