Tata Motors Passenger Vehicles sees recovery for Jaguar Land Rover unit
The luxury unit reiterates its full-year margin target of up to 2%
Add BT as a preferred source
[MUMBAI] Tata Motors Passenger Vehicles expects its UK Jaguar Land Rover (JLR) unit to improve its performance in the current quarter and meet its fiscal-year margin target, after the Indian carmaker announced it had swung to a third-quarter loss on Thursday (Feb 5).
A cyberattack on JLR, Tata Motors’ luxury unit and Britain’s largest carmaker, hit sales and led to a US$177.2 million one-time charge.
The attack forced the unit to halt production for five weeks – up to early October in 2025.
It cost JLR US$228.5 million in the July-to-September period, prompting the British government to step in with a £1.5 billion (S$2.6 billion) loan guarantee to support the luxury carmaker’s supply chain.
JLR CEO PB Balaji said JLR’s performance in the January-to-March period is expected to improve significantly from previous quarters, as the company reiterated its full-year margin target of up to 2 per cent.
The unit had already lowered it twice, following US tariffs on imported vehicles and the cyberattack.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Tata Motors also maintained its forecast for JLR’s cash flow at negative £2.2 billion to negative £2.5 billion.
The Range Rover SUV manufacturer posted a loss of 34.9 billion rupees (S$491.9 million) for the October-to-December period, compared with a profit of 54.1 billion rupees the year-ago period.
JLR accounts for up to 80 per cent of its parent company’s revenue, with the domestic business forming the remainder.
It reported a 43 per cent decline in sales, excluding that of its Chinese joint venture, with normal production levels following the shutdown resuming only around mid-November.
JLR’s quarterly earnings before interest and taxes margin, a closely watched indicator of the company’s operational profitability, slid to negative 6.8 per cent from 9 per cent the year-ago period.
Tata Motors’ domestic business posted a 22 per cent rise in local sales and exports.
The company’s quarterly revenue fell 25.8 per cent to 696.1 billion rupees. Tata Motors’ shares closed 0.4 per cent lower in Mumbai, ahead of reporting results. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
