NEW DELHI, April 24 -- Jaguar Land Rover (JLR) is facing its largest-ever US recall, with more than 170,000 vehicles pulled back over a critical drive power defect, an issue that, by one estimate, could cost the British luxury carmaker upwards of $130 million and dent customer confidence in a key market.

The recall, triggered by a hardware fault that can lead to a complete loss of drive power, comes as the Tata Motors-owned unit grapples with the fallout of a cyberattack and higher tariffs in North America. While the financial hit is seen as manageable, analysts warn the cumulative impact of repeated disruptions and safety concerns could weigh on demand and brand perception.

According to at least two independent experts, the recall coul...