(romero.my.id) -Tata Motors of India refrained from confirming its profit targets for the luxury vehicle division, Jaguar Land Rover (JLR), on Tuesday. This move aligns with other international auto manufacturers who have either withdrawn or withheld their financial projections amid uncertainties surrounding potential U.S. tariff changes.
Imported automobiles have been at the center of U.S. President Donald Trump's international trade conflict. Last month, Trump introduced a 25% tax on all non-domestically produced vehicles in what is the world’s second-biggest automobile market—the rapidly expanding region for UK-based Jaguar Land Rover.
JLR said it met its earnings before interest and taxes (EBIT) margin target of 8.5% for the year ended March, but abstained from confirming its target of a 10% EBIT margin for the current fiscal year.
"Tata Motors, earning roughly two-thirds of its total income from JLR, is reviewing its guidance following the announcement of the new UK-U.S. trade deal on May 8th. We'll share further details during our investor meeting on June 16th," the company stated.
Even though there’s a U.S.-UK trade agreement in place, experts predict that Jaguar Land Rover’s sales in North America will decline this financial year. Some point out that the popular ‘Defender’ SUV, manufactured in Slovakia, isn’t included in the accord.
Globally, automakers such as Mercedes-Benz, the owner of Stellantis which includes Fiat, and Volvo have either declined to provide or withdrawn their profit predictions.
Nevertheless, Jaguar Land Rover's sales volume increased by 1.1% during the January-March period, buoyed by robust demand for its sport utility vehicles in North America and Europe.
This enabled Tata Motors' earnings for the quarter ending March to surpass expectations at 84.70 billion rupees ($993 million), higher than the estimated 74.58 billion rupees, as per data gathered by LSEG.
The firm's earnings were reduced by half compared to the same period last year, owing to a one-off tax advantage recorded back then.
Tata Motors' stock finished 1.8% down before the release of their results. ($1 = 85.2750 Indian rupees)
(Nandan Mandayam reported from Bengaluru; editing by Janane Venkatraman and Savio D’Souza)
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