The cyberattack that forced Jaguar Land Rover to shut down its factories is expected to have cost the carmaker more than £3 billion in lost sales over the final quarter of the year.

The West Midlands-based group, owned by Tata Motors, revealed that vehicle shipments from its factories plunged by 43 per cent in the three months to December after hackers crippled its IT systems.

Wholesale volumes, the point at which vehicles leave the production line for dealerships, fell to 59,200 units between October and December, down sharply from 104,000 in the same period last year. That earlier quarter generated revenues of around £7.5 billion, indicating that sales for the latest period are likely to come in closer to £4–£4.5 billion, leaving a shortfall of at least £3 billion year on year.

The disruption followed a cyber incident at the end of August that forced JLR to halt production globally throughout September. Manufacturing restarted gradually from October, with factories only returning to full output in mid-November, creating a significant backlog in deliveries.

Retail sales, vehicles actually sold to customers, fell by a less severe 25 per cent to 79,600 units over the same period. That gap suggests dealers were able to continue selling stock already on forecourts even as shipments from factories dried up.

JLR said the disruption was compounded by the time required to move vehicles through its global distribution network once production resumed.

“Volumes in the quarter were initially impacted by production stoppages following a cyber incident, and the time required to distribute vehicles globally after production restart,” the company said.

The figures were also affected by JLR’s strategic pause on Jaguar production. The company has largely wound down its existing Jaguar model range while delaying the launch of its new electric Jaguar vehicles, following controversy over design direction and uncertainty around customer demand.

Jaguar Land Rover operates major manufacturing sites in Solihull in the West Midlands and Halewood on Merseyside, with Defender production based in Slovakia.

The group is expected to provide a fuller update on the financial impact of the cyberattack and factory shutdowns when it reports its quarterly results next month. It is understood the company is planning to unveil its first new Jaguar electric models later this year as part of its broader electrification strategy.

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Jaguar Land Rover cyberattack set to wipe £3bn off sales after production halt