JLR keeps ICE models

JLR said on May 15 that changing market conditions and tariff pressure could require it to keep internal-combustion vehicles in its U.S. portfolio for longer, a shift from a cleaner break toward an all-electric lineup in that market. Business Standard reported the comment after the company’s latest results, which showed the British luxury carmaker still working through the effects of U.S. tariffs, weaker conditions in China and the planned wind-down of older Jaguar models. (business-standard.com) (jlr.com) The company did not announce a new U.S. product plan or identify which models would stay on sale longer. But JLR’s own recent statements have repeatedly listed U.S. tariffs among the factors weighing on volumes and profits, even as it continues to promote the coming launch of Range Rover Electric and the first new Jaguar of its next cycle. ### Why would tariffs affect whether JLR keeps gasoline and diesel models in the U.S.? The United States and United Kingdom agreed in May 2025 that the first 100,000 UK-built vehicles imported into the U.S. each year would face a 10% tariff, while additional vehicles would face a higher rate. (business-standard.com) The arrangement replaced a steeper tariff burden for qualifying volumes, but it did not remove tariff exposure altogether. JLR has said in both its February and May 2026 financial updates that U.S. tariffs affected exports and full-year volumes. (media.jaguarlandrover.com) In its May 14 results statement, the company said FY26 volumes were hit by U.S. tariffs, China market challenges, the planned wind-down of outgoing Jaguar models and production stoppages after a cyber incident. ### What exactly did JLR say about keeping ICE models longer? Business Standard reported on May 15 that JLR said changing market dynamics and tariff pressures may require it to retain internal-combustion vehicles in its U.S. portfolio for longer. (whitehouse.gov) The report framed that as a response to both trade conditions and a less certain electric-vehicle market than earlier planning assumptions had implied. JLR’s public materials still describe electrification as a central part of its strategy. (media.jaguarlandrover.com) On its investor relations page, the company says it is committed to the electrification of its “House of Brands,” and its May 14 results statement said FY27 product activity would start with Range Rover Electric, the first EMA products and a new Jaguar unveiling. ### Is this about Jaguar, Land Rover, or both? Jaguar is already in the middle of a model reset. JLR said in February and again in May that volumes were affected by the planned wind-down of outgoing Jaguar models ahead of the new Jaguar launch. (business-standard.com) Land Rover remains the volume base of the business. JLR said wholesale volumes in the fourth quarter were 95,300 units, and Range Rover, Range Rover Sport and Defender accounted for 77.1% of total wholesale volumes in that period. (jlr.com) That mix means any decision to keep combustion models available longer in the U.S. would matter most in the brands and nameplates that still drive sales. ### What do the latest numbers say about the pressure on JLR? JLR reported on May 14 that fourth-quarter revenue was 6.9 billion pounds and full-year revenue was 22.9 billion pounds. Profit before tax and exceptional items was 458 million pounds in the quarter and 14 million pounds for the full year, down from 2.5 billion pounds a year earlier. (media.jaguarlandrover.com) The February update was weaker. JLR reported a 310 million-pound quarterly loss before tax and exceptional items for the three months to Dec. 31, 2025, and said U.S. tariffs were one of the factors behind the decline. (jlr.com) ### What comes next from JLR? JLR has scheduled Investor Day for June 17, 2026, at Gaydon, Warwickshire. The company’s investor relations page says executives will host investors there, after its May results statement pointed to upcoming milestones including the launch of Range Rover Electric and the unveiling of the first new Jaguar later in 2026. (media.jaguarlandrover.com) (jlr.com) (media.jaguarlandrover.com)