JLR, a key profit driver for Tata Motors, sold 430,000 vehicles worldwide in the 12 months ending March 2024, with nearly a quarter of that volume—approximately 107,500 units—destined for North America, according to its latest annual report. The US market suspension, first reported by The Times, comes as the company grapples with a 17% decline in quarterly pretax profit reported in January, reflecting challenges in maintaining profitability amid rising costs and shifting demand. “The USA is an important market for JLR’s luxury brands,” a JLR spokesperson said in an emailed statement. “We are enacting short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans.”
On Thursday, brokerage firm CLSA downgraded Tata Motors from “high conviction outperform” to “outperform,” slashing its price target by 18% to ₹765 from ₹930, implying a 17% upside from Thursday’s close. The downgrade, enacted just under two months after the stock’s inclusion on the high conviction list, reflects concerns over the tariffs and Jaguar model discontinuations, which CLSA predicts will cut JLR volumes by 14% year-on-year in fiscal 2026.
The tariff, part of Trump’s broader “reciprocal” trade strategy, has prompted varied responses from automakers globally, with JLR’s move marking the latest fallout. The company, renowned for its Jaguar and Land Rover brands, now joins a growing list of manufacturers rethinking strategies to mitigate the financial hit from the new trading terms, underscoring the broader pressure on the $6 billion Indian auto giant Tata Motors as it navigates this turbulent period.