Jaguar Land Rover cyberattack triggers steep decline in UK car output

British vehicle manufacturing slumped dramatically in September after a damaging cyberattack forced Jaguar Land Rover (JLR), the nation’s largest automotive employer, to halt production for five weeks. According to the Society of Motor Manufacturers and Traders (SMMT), only 54,319 vehicles, including cars, vans and lorries, left UK assembly lines last month—a drop of 35.9 per cent compared to the previous year. The overwhelming majority of this decline is attributed to the prolonged shutdown at JLR.

The cyberattack, which commenced on 1 September, paralysed JLR’s global operations, causing widespread disruption among suppliers and threatening a rolling impact throughout the UK manufacturing sector. Car production alone shrank by 27.1 per cent to 51,090 units, with nearly half—47.8 per cent—being electric or hybrid models. Output of commercial vehicles also suffered, continuing a six-month downward trend and tumbling 77.9 per cent to 3,229 units.

Over the year to date, Britain’s car and van plants have produced 582,250 vehicles, marking a 15.2 per cent drop compared to the same period in 2024. Mike Hawes, SMMT chief executive, stated that the industry’s performance “comes as no surprise” against the backdrop of the extended production standstill at JLR. The company has now resumed limited production at its UK factories; however, full capacity is unlikely before the start of next year.

This incident has dealt a substantial financial blow to JLR and the wider supply chain. Estimated costs for the Coventry-based company, its suppliers, and affected local businesses are believed to have reached £2 billion already, with the true figure likely to rise the longer the disruption continues. JLR, which employs 30,000 people directly and supports a further 200,000 jobs, is a linchpin for the UK’s automotive landscape.

Trade bodies including the SMMT have pressed for government support to ease ongoing pressures. Central to their concerns is the potential scrapping of employee car ownership schemes (Ecos), which allow workers to access new cars at reduced prices. While the government has described these schemes as a means to avoid certain taxes, industry leaders insist their abolition could harm 60,000 automotive jobs and reduce UK output by as many as 20,000 cars each year.

Maintaining Ecos programmes, rapid energy cost measures, targeted skills funding, and continued resilience-building within the supply chain are seen by the SMMT as vital steps to stabilise and revive the sector after this historic cyber-related setback.