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Sales at Jaguar Land Rover (JLR) are struggling to recover as it battles higher costs and supply issues caused by the Middle East conflict.

The motoring giant reported revenue of £6billion in the three months to June, down 9.6 per cent year-on-year, as sales plummeted amid 'temporary supply constraints'.

JLR, owned by India's Tata Motors, had started to recover from a cyber attack last August which brought production to a halt for more than a month, before the Iran war struck.

It said today that the number of vehicles sold to car dealers in the first quarter fell by 9.2 per cent as the conflict disrupted markets amid 'continuing geopolitical, inflationary and regulatory challenges'.

It also followed a fire at a major component supplier at the start of the quarter and the planned wind down of outgoing Jaguar models.

Setback: The Iran war has scuppered JLR's recovery from a cyber attack last August

The drop in sales saw pre-tax profits fall to £109million in the first quarter, down from a profit of £351million a year ago, as retail variable marketing expense – which covers dealer incentives and promotional allowances – rose from 4.1 per cent to 7.1 per cent.

Adjusted Ebit margin was 2.8 per cent for the period, down from 4 per cent.

It follows a challenging period for JLR after the cyber attack wiped out sales, with the impact so large it was reported to have affected economic growth last year.

In July, JLR, which employs about 30,000 people in the UK, said it planned to cut hundreds of jobs to help recover £1.7billion in costs associated with the attack.

The company has also faced a deterioration in its Chinese market and the ongoing impact of US tariffs.

P B Balaji, chief executive officer, JLR, said: 'Despite the near-term industry challenges, we continue to see strong demand for our brands and look forward to the launch of four sensational new products in the coming months'.

JLR has announced the launch of the Range Rover Electric, Range Rover Sport Electric and Range Rover GT as well as the Jaguar Type 01.

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