(Reuters) -New luxury car manufacturer Jaguar Land Rover reduced his tax income from 2026 before interest and tax margins predicted up to 5% -7% on Monday from 10% earlier, in the midst of uncertainty in the global car industry as American rates.
Shares in the Indian parent of the Tata Motors company saw no less than 5.2% in early trade after the announcement.
The revised eBit -Marge forecast is also 8.5% margin reported under JLRs for the previous tax year ending on March 31.
JLR added that it sees a free cash flow of almost zero in tax 2026.
The company, which derives more than a quarter of its turnover from the US, had temporarily paused the shipments after President Donald Trump had made a 25% duty on all foreign vehicles that were sold on the second largest car market in the world.
The ‘defender’ maker of Sport Utility vehicle said that it again assigns the available units to “accessible markets” to stimulate the profit.
It added that it continues to deal with both the American and British governments with regard to a trade agreement signed in May, allowing the VK to export 100,000 cars a year to the US at a rate of 10%, below 25% levy for other nations.
Although the “Range Rover” SUV -Line -Up from JLR is manufactured in the UK, the popular “defender” is made in Slovakia, a member of the European Union, who does not yet have a trading pact with the Trump government.
The car manufacturer said it assesses price promotions in the US to compensate for the rate impact.
Analysts have said that JLR may be less influenced by the increased costs associated with the rates, thanks to a richer customer base that will probably not be put off by a larger price tag.
Tata Motors, however, remains one of the most exposed Indian car manufacturers of the American tasks, because JLR does not miss local production in the country, in contrast to most of its rivals, including German brands Mercedes-Benz and BMW.
(Reporting by Kashish Tandon and Nandan Mandayam in Bengaluru; Edit by NIVEDITA Bhattacharjee and Rashmi Aich)
