JLR lowers EBIT margin forecast due to auto industry uncertainties, Tata Motors shares drop 5.2%

From Yahoo Finance: 2025-06-17 06:41:00

Jaguar Land Rover (JLR) revises fiscal 2026 EBIT margin forecast to 5%-7% from 10% due to global auto industry uncertainties, including US tariffs. Tata Motors shares drop 5.2% after announcement. JLR projects close to zero free cash flow for fiscal 2026 and pauses shipments to the US due to tariffs.

US President Trump signs executive order reducing tariffs on UK cars exported to the US. Agreement allows 100,000 British automobiles annually at a 10% tariff, lower than the 25% imposed on other countries. JLR evaluates pricing strategies in the US to mitigate tariff impacts.

JLR lacks local US manufacturing, making Tata Motors one of the most exposed to US duties among Indian auto manufacturers. JLR and Tata Communications enhance partnership to improve connected vehicle ecosystem via Tata Communications MOVE platform. JLR may be less impacted by tariffs due to affluent customer base.



Read more at Yahoo Finance: JLR adjusts FY26 EBIT margin forecast over uncertainties in auto industry