US-UK FTA BECOMES SECOND BOOSTER SHOT FOR TATA MOTORS THIS WEEK
The entire export volume of Jaguar Land Rover (JLR) to the US from the UK stands to benefit from the trade deal that was signed between the two nations on Thursday.
The US is the single largest market for the two Tata Motors-owned British luxury brands, clocking around 100,000 units in sales last year, which is one-fourth of the total sales volume done by JLR in FY25.
The reduced tariff of 10%, as per the US-UK trade pact, from a potential 27.5% tariff, will be applicable for the first 100,000 cars shipped from the UK. Last year, 102,000 vehicles were exported from the UK to the US, which included Aston Martin cars as well.
This is a double booster shot for Tata Motors within the week. On Tuesday, India and the UK signed a free trade agreement (FTA) allowing for export of fully-built JLR vehicles to India at a substantially reduced tariff. This pact will come into force next year.
The Tata Motors stocks on Friday beat the broader investor sentiment to close nearly 4% higher on the BSE, at Rs 708.5, compared to its Thursday’s close. The benchmark Sensex closed 1.1% lower on the same day.
Though there is a cap on total shipments, JLR will use the reduced tariff on the top-end variants of the model line-up, market watchers expect. Range Rover and Range Rover Sport, which are the most profitable models within the JLR line-up, are the best-sellers in the US.
The tariff reduction comes at a time when JLR is preparing to launch the Jaguar Type 00, a fully electric premium car it unveiled in Miami in December 2024.
In early April, JLR was forced to pause its shipments to the US after President Donald Trump imposed 25% tariffs on imports from the UK.
“The car industry is vital to the UK’s economic prosperity, sustaining 250,000 jobs. We would like to thank the UK and US governments for agreeing this deal at pace and look forward to continued engagement over the coming months,” Adrian Mardell, CEO, JLR said in a statement.
In FY25, JLR barely managed to breach the 400,000 units sales milestone. It sold 400,898 units in wholesales, which was nearly unchanged from its FY24 total. Shipments to North America (including Canada and the Defender made in Slovakia) grew by 22%, lifting the total volume basket for the year as all other markets were either flat or reported a fall.
“JLR achieved its net debt zero target, ending the financial year with a net cash positive, a key reimagine strategy target,” JLR said in a statement.
2025-05-09T18:06:35Z