India-uk, Us-uk Ftas Set To Lift Jlr Prospects As Tata Motors Focuses On Cost Discipline

The India-UK and US-UK free waste and acquisition agreements are expected to amended nan prospects of Jaguar Land Rover, according to a elder institution official. P B Balaji, Group CFO of Tata Motors, stated that nan FTAs will thief thrust maturation for JLR. "We invited nan India-UK FTA arsenic good arsenic nan US-UK tariff change. We are waiting for much specifications successful position of timing. We besides request explanation connected parts and accessories, but overall, it's heading successful nan correct direction. The business is overmuch amended than before, but we will hold for further explanation connected notifications and immoderate applicable changes earlier making a last decision," Balaji said during an net call.

Balaji mentioned that nan company's existent JLR lineup will not beryllium affected by nan FTAs.

“The existent cars that are already location successful India, i.e. nan Range Rover franchise, are already being manufactured successful India connected a CKD ground and won't beryllium impacted by this FTA. At nan aforesaid time, we besides hold for erstwhile nan FTA really comes into force. But we judge this is going to use nan early costs that are going to come, which intends customers will beryllium capable to entree these world cars astatine world prices overmuch faster because of this FTA, and therefore, it augurs very good for continuing to thrust JLR capacity successful India going forward. So that's nan play connected some of nan treaties,” noted Balaji. 

Under nan India-UK FTA, import duties connected cars built successful nan UK person been reduced from 100% to 10%. Similarly, nether nan US-UK FTA, nan US authorities has lowered tariffs connected cars imported from nan UK from 25% to 10%. Last month, successful consequence to a 25% tariff announcement by nan Trump management connected car imports, JLR stopped shipping cars to nan US.

Despite this reduction, nan 10% tariff is still higher than nan erstwhile 2.5% tariff. Balaji mentioned that nan institution is processing a scheme to power costs. He stated: “The 10% tariff is still higher than 2.5%, which is nan logic we are continuing to put done a scheme connected costs out, rate out, in, successful nan wide JLR space. There are aggregate areas for america to activity on, including worldly cost, warranty costs, etc. That’s why we support a heightened vigilance of costs and rate arsenic we navigate that piece. And we'll astir apt beryllium capable to spot nan implications of each those successful nan coming quarters.” 

In nan 4th fourth of fiscal twelvemonth 2025, Tata Motors reported a 51.7% alteration successful nett profit for nan 4th ending successful March 2025, pinch net falling to ₹8,470 crore compared to ₹17,552 crore successful nan erstwhile year. Revenue knowledgeable a flimsy increase, rising to ₹1,18,927 crore from ₹1,18,300 crore year-on-year.

Published on: May 13, 2025 9:24 PM IST