JLR’s tariff blues, weak India demand hurt Tata Motors profit
The Trump tariffs in the US Jaguar Land Rover (JLR) vehicles and the weak automobile demand in India damage Tata Motors Ltd and dragged the car manufacturer’s profit in June.
The company’s earnings on Friday have won three -quarters of its income and 70% of the profit, three -quarters of its income and 70% of the profit.
“The company’s performance in this quarter was influenced by the decrease in profitability in JLR, which was influenced by the volume decreases and the effect of the US trade tariff,” he said.
In April, US President Donald Trump brought a 25% tariff to cars imported from the UK, where JLR produced its products. After the US-UK trade agreement, the tariff rate was reduced to 10%.
Consolidated snow dropped by about 63% La3,924 CRORE LaA year ago 10,514 Crore missed an association of consensus La4055 Crore in the Bloomberg survey. Consolidated income fell by 2.5% La104.407 Crore.
The income from the commercial vehicle section decreased by 4.7% compared to the previous year. La17.009 Crore. The company called it a “challenging quarter” for the CV industry, and the suppressed demand between lock segments has damaged general performance.
“In addition, segments such as buses and minibuses showed flexibility and have witnessed a decrease in local sales volumes, reflecting the larger market softness and delayed fleet changes, because it enabled our international business to grow.” He said.
Balaji, who served as JLR’s CEO this year, said that the company is working to improve margins in the CV business in the medium term and this is an important priority.
Passenger vehicle work was also under pressure and income fell by about 8.2% La10,877 Crore. Volumes fell 10.1%affected by a general slowdown in demand and the transition to new generation products. In the PV segment, the company expects gradually recovering at the rest of the year under the leadership of festive demands and new launch.
“The results show that the situation is careful and that a return will be closely monitored in JLR. However, there are green exiles on the horizon of PV and CV work, so things may look good in the medium term,” said Geojit Financial Services. He said.
Balaji, who made more comments about JLR, said the company faced about £ 250 million in tariff charges in the current quarter. Authorized, the US-UK trade agreement, now announced in the quarter of the 10%tariff and will help to alleviate financial pressures in the coming quarters, he said.
At the center of soft growth in Tata Motors, there are JLR and weaker passenger cars in the domestic market.
Tata Motors said the hearing of the National Company Law Court of Appeal of the Law on PV and CV enterprises ended separate companies on Friday. The Court said that Tata Motors said that Dememer expects to enter into force on 1 October.
In July, the automobile manufacturer acquired IVECO, the Italian truck and bus manufacturer, for $ 4,36 billion, which will be part of the commercial vehicle business, which earned income. La17,009 Crore in June quarter.
Unlike Tata Motors’ low performance, automobile manufacturers Mahindra and Mahindra, Maruti Suzuki’s better performance than expected, both of them jumped 22% and 10% respectively. However, Hyundai India reported a decrease.
