Tata Motors reevaluating JLR's profitability target due to US tariffs uncertainty

From Yahoo Finance: 2025-05-13 06:43:00

Tata Motors reevaluating annual profitability target for Jaguar Land Rover (JLR) due to U.S. tariff changes. JLR met 8.5% EBIT margin target but uncertain about 10% target for fiscal 2026. UK-U.S. trade deal allows UK to export 100,000 cars a year with 10% tariff. Analysts expect drop in JLR’s North America sales.

Despite trade deal, JLR’s North America sales may drop due to tariffs. Top-selling “Defender” SUV not covered under the deal. Global automakers like Mercedes-Benz, Stellantis, and Volvo cautious with forecasts. JLR’s sales volumes rose 1.1% in January-March quarter, boosting Tata Motors’ fourth-quarter profit.

JLR’s parent Tata Motors to provide guidance update on June 16. Company’s profit of 84.70 billion rupees beats analysts’ estimates. Tata Motors’ shares closed 1.8% lower ahead of results. Group CFO PB Balaji expects implications of tariffs to be seen in coming quarters. Automakers worldwide facing forecast uncertainty.

Read more: Tata Motors reassessing JLR’s forecast as US tariffs fan uncertainty