Faced with a drop in sales, senior Jaguar Land Rover (JLR) officials met at Bombay House earlier this week, the Times of India has reported. They attributed the slowdown to uncertainty surrounding the terms of the recently concluded India-UK Free Trade Agreement (FTA) , the report cited sources as saying.
Several customers have put on hold their purchases, anticipating a drop in the prices after the FTA comes into effect, the report cited a JLR dealer as saying. However, several models are largely assembled in India, and won’t see a significant impact from the deal, the report added.
Moneycontrol couldn't verify the report independently.
Earlier this month, India and the UK concluded a Free Trade Agreement (FTA), the first major pact between the two nations after US President Donald Trump's policy on tariffs threatened to upend global commerce.
The detailed text of the agreement is expected to be shared by officials after three months during which a joint “legal scrubbing” of the deal is expected to be concluded, government officials have told Moneycontrol.
While announcing its results for March quarter on May 13, Tata Motors said Jaguar Land Rover (JLR) recorded a revenue of £7.7 billion , a fall of 1.7 percent from the year-ago period.
The EBIT margin was 10.7 percent, up 150 basis points from the previous year. This is the best EBIT margin reported by the company in a decade. The EBITDA margin, however, dropped to 15.3 percent.
Jaguar Land Rover reported wholesales at 1.11 lakh in, marking a 1 percent jump from Q4 FY24.
“On 8 May 2025 we welcomed the positive announcement of a US-UK trade deal. This reduces US trade tariffs on UK auto exports to the US from 27.5% to 10 percent, within a quota of 100,000 vehicles.
“This deal brings greater certainty for our sector and stakeholders. We will continue to engage with the UK Government on the detail of the trade deal. Our priority is to ensure we deliver for our global clients and protect EBIT through delivery of transformation and efficiency initiatives.
“Looking ahead, we expect investment spend to remain at £18 billion over a five-year period and will be funded by operational cash flows. We continue to evaluate the impact of global challenges and will provide an update at our Investor Day on 16 June 2025," Tata Motors said in an exchange filing.
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