Jaguar Land Rover is to cut production of two of its leading models because of flagging diesel sales and uncertainty over Brexit.
The UK’s biggest carmaker is to slow production of the Range Rover Evoque and Discovery Sport at its Halewood plant in Liverpool.
The move comes despite the company announcing record sales number for last year.
Despite tough market conditions, Jaguar Land Rover achieved its best ever full-year global sales in 2017 with retail sales of 621,109 vehicles, up 7% on the prior year – more than triple the 2009 figure.
The company said in a statement the car industry was facing a range of challenges which were adversely affecting consumer confidence.
“Ongoing uncertainty surrounding Brexit is being felt by customers at home (with demand for new cars down 5.7% in 2017) and in Europe where collectively, we sell approximately 45% of total UK production,” it said.
“Add to this, concern around the future of petrol and diesel engines, and general global economic and political uncertainty, and it’s clear to see why industry is seeing an impact on car sales.”
The company said it would be scaling back from three-shift production on the affected models on a “temporary” basis.
Jaguar Land Rover is a wholly-owned business division of Tata, the Indian industrial conglomorate which is quoted on the London Stock Exchange.
However, booming profits have prompted some to see it as well-placed for a possible public flotation (IPO).