Source : PTI | New Delhi: Tata Motors is keeping a close eye on developments in China and the potential impact of US tariffs, but remains optimistic about growing demand from other regions to mitigate these challenges. The Indian automaker’s luxury arm Jaguar Land Rover (JLR), is placing its bet on increasing sales in the UK, Middle East, India, and other territories, according to the company’s top executive.
The Indian auto industry is facing external challenges due to geopolitical issues and the Red Sea crisis, which has hindered overall growth. However, Tata Motors is anticipating strong performance in FY25 despite these external pressures.
JLR’s import business has performed relatively better than the overall market, with a nominal decline of 5% in the premium segment, compared to a 14% overall decline in the industry, stated PB Balaji, CFO of Tata Motors, during the Q3 post-earnings call. Tata Motors’ JLR achieved record quarterly revenue of 7.5 billion pounds, a 1.5% increase from the previous year for Q3 FY25.
Watchful Actions
The company is closely monitoring the potential for new US tariffs on automotive imports under the Trump administration. However, it remains confident in its strategy from both a cost and demand perspective. “China’s demand situation is being impacted by some retailers facing financial stress, which is affecting the entire industry,” added Balaji.
In the UK market, a key challenge related to market assurance is being resolved, with Tata Motors now observing improved assurance availability for consumers.
Pacing Ahead with Optimism
Despite the unfavorable external conditions, Tata Motors remains optimistic about JLR demand in the US market and expects strong performance in Q4 FY25. “I believe Q4 US volumes will be higher due to the seasonality that typically kicks in,” added Balaji. Tata Motors has already recorded a 44% growth in the US market, which will help offset declining sales in China.
Once the financing situation for retailers in China improves, the company’s performance in the country is expected to return to growth in the coming quarters. “As long as customers are satisfied with the products and perceive the right value and aspirational appeal, we will continue to perform well,” added Balaji.
To capture any market, the key is adherence to CAFE norms and compliance with emission standards in each jurisdiction. Tata Motors is looking forward to robust FY25 sales, bolstered by a strong product portfolio and ongoing efforts to adapt to market demands.
