British luxury carmaker Jaguar Land Rover (JLR) has revised its fiscal 2026 earnings before interest and taxes (EBIT) margin forecast to 5%-7% from the previous 10%.
This adjustment comes because of the uncertainties in the global auto industry, particularly due to US tariffs, reported Reuters.
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Shares of Tata Motors, JLR’s Indian parent company, fell by up to 5.2% in early trading following the announcement.
JLR also projected close to zero free cash flow for fiscal 2026.
After the Trump administration imposed a 25% duty on foreign-made vehicles, the company, which makes more than a quarter of its sales from the US, paused shipments to the country.
The carmaker is also looking at reallocating units to “accessible markets” to enhance profitability.
The JLR news comes as US President Donald Trump signed an executive order yesterday to reduce tariffs on UK cars being exported to the US.
As per the executive order released by the White House, the agreement reaffirms quotas and tariff rates on UK-made vehicles.
The order allows 100,000 British automobiles to be imported to the US annually at a 10% tariff, lower than the 25% tariff imposed on other countries.
The terms of this trade pact were outlined last month.
Although JLR’s Range Rover SUV lineup is manufactured in the UK, its Defender is produced in Slovakia, an EU member that has no trade pact with the Trump administration.
JLR is evaluating pricing strategies in the US to mitigate tariff impacts, though it may be less impacted due to its affluent customer base that may absorb higher costs.
However, Tata Motors is one of the most exposed to US duties among the Indian auto manufacturers, as JLR lacks local manufacturing in the country, unlike competitors such as Mercedes-Benz and BMW, reported the media outlet.
In January, JLR and Tata Communications enhanced their partnership to improve JLR’s connected vehicle ecosystem via the Tata Communications MOVE platform.
