Shares in Jaguar Land Rover’s owner fell on Friday after the luxury-car maker reported a slide in quarterly profits amid the impact of production disruptions, the Middle East conflict and the dwindling appeal of European cars in China.

JLR profits after tax fell more than 80 per cent to £66mn in the three months to June 30, with a cash outflow of almost £1bn. Margins fell to 2.8 per cent compared with 4 per cent in the same period last year. JLR accounts for about 80 per cent of Tata Motors Passenger Vehicles’ overall revenues.

Richard Molyneux, JLR’s finance chief, told analysts that wholesale volumes were down more than 9 per cent year on year. This was partly due to shifting legacy models and a fire at a supplier. Analysts at Motilal Oswal reiterated a “sell” rating, noting that JLR faces multiple obstacles on the demand and cost fronts.