Tata Group chairman N Chandrasekaran during Tata Motors’ 80th annual general meeting on Friday said Tata Motors-owned Jaguar Land Rover may face up to £1.6 billion ($2.1 billion) in tariff impacts due to new US trade measures. However, he added that mitigation efforts are underway to reduce the impact to around £600 million. “Tariff is a major issue, primarily for JLR,” Chandrasekaran said. “Without intervention, JLR’s tariff rate would have risen from 2.5% to 27.5%. But thanks to the US-UK trade agreement, the rate has been brought down to 10%.”
The AGM marked Chandrasekaran’s first shareholder appearance since the June 12 Air India Flight 171 crash, which caused him to miss other Tata Group AGMs earlier in the week.
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The meeting was particularly notable as it was Tata Motors’ last before its planned demerger into two listed companies, one for passenger vehicles and the other for commercial vehicles, by the end of 2024.
Chandrasekaran also assured investors that recent Chinese export restrictions on rare earth magnets, vital for electric motors, do not pose an immediate threat, as the company is exploring alternative sources.
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Earlier this week, JLR forecasted a revenue dip from £29 billion in FY25 to £28 billion in FY26, citing US tariffs, softening demand in China, currency fluctuations, regulatory challenges and slow EV adoption as key concerns. Despite these pressures, the company reaffirmed its £18 billion investment plan through FY28, with £3.8 billion earmarked for FY26 alone.
According to Auto Car Pro, major product launches of JLR expected to drive future growth include the Range Rover Electric, the Freelander EV and a limited-production high-end Jaguar EV, all targeting recovery beginning in 2026.
Earlier in the AGM, Chandrasekaran led the management and the company’s shareholders in paying homage to the victims of the Air India plane crash by observing a one-minute silence.
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