British carmaker JLR trims FY26 margin forecast on US tariff concern

British luxury carmaker
Jaguar Land Rover
lowered its
fiscal 2026 earnings
before interest and taxes margins forecast to 5 per cent
-7 per cent on Monday from 10 per cent earlier, amid uncertainty in the global auto industry as
US tariffs
loom.
Shares in the company's Indian parent
Tata Motors
slumped as much as 5.2 per cent in early trade following the announcement.
The revised EBIT margin forecast is also below JLR's reported 8.5 per cent margin for the previous fiscal year ended March 31.
JLR added it sees free cash flow of close to zero in fiscal 2026.
The company, which derives over quarter of its sales from the US, had temporarily paused shipments to the country after President Donald Trump slapped a 25 per cent duty on all foreign-made vehicles sold in the world's second-largest car market.
The 'Defender' sport utility vehicle maker said it is re-allocating available units to "accessible markets", to boost profits.
It added that it continues to engage with both the US and UK governments regarding a
trade deal
signed in May, which allows the UK to export 100,000 cars a year to the US at a 10 per cent tariff, below the 25 per cent levy for other nations.
While JLR's "
Range Rover
" SUV lineup is manufactured in the UK, the popular "Defender" is made in Slovakia, a member of the European Union, which does not yet have a trade pact with the Trump administration.
The carmaker said it is assessing pricing actions in the US to help offset the tariff impact.
Analysts have said JLR may be less affected by the increased costs associated with the tariffs, thanks to a wealthier customer base that is unlikely to be deterred by a bigger price tag.
However, Tata Motors remains among the most exposed Indian
automakers
to the US duties, as JLR lacks local manufacturing in the country, unlike most of its rivals, including German brands Mercedes-Benz and BMW.

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