There is no way to sugarcoat Jaguar Land Rover’s latest set of financial results. In the final three months of 2018, balance sheets will record the company made a pre-tax loss of £3.4 billion.

Granted, that eye-popping number is inflated by a one-off non-cash charge of £3.1bn. But even if you discount that as an ‘exceptional item’, it’s tough reading: a pre-tax loss of £273 million, compared with £90m in the previous financial quarter.

Whichever figure you choose to focus on – £3.1bn or £273m – neither is positive. And both, in different ways, lay out the challenges Jaguar Land Rover faces in the coming years.

The one-off £3.1bn non-cash charge effectively comes from Jaguar Land Rover adjusting down the value of some of its capitalised investments, such as factories and machinery, effectively recognising that money it has previously invested in them won’t be recovered.

It is understood a number of those investments relate to the production of diesel-engined cars, which have long made up the bulk of Jaguar Land Rover’s sales. That has left the company particularly vulnerable to the slump in demand for diesel, which, right or wrong, seems increasingly to be an irreversible trend. By reducing the ‘carrying value’ of its capitalised investments, Jaguar Land Rover says it will save around £300 million annually in deprecation and amortisation.