This is Jaguar Land Rover’s first quarterly loss in three years.
Domestic carmaker Tata Motors has reported a net loss of ₹1,864 crore during Q1 of the ongoing financial year. While Tata’s own automotive division grew during the same period, its UK subsidiary Jaguar Land Rover (JLR) was hit hard following the recent duty reduction in China.
While JLR’s retail sales grew by 5.9 per cent year-on-year, its wholesales (including China JV) were 13,950 units less, primarily reflecting lower wholesale sales in China before the reduction in import duties from 25 per cent to 10 per cent on July 1, 2018, and planned dealer stock reduction in other markets.
Consequently, JLR’s revenue for Q1 FY19 was down by 6.7 per cent year-on-year. In addition to the issue in China, the company has been facing other challenges, including plummeting diesel sales across Europe.
Dr. Ralf Speth, Jaguar Land Rover Chief Executive, said, 'We had a pre-tax loss in the first quarter, reflecting the impact of the announcement of the duty reduction in China as well as planned dealer stock reduction in the quarter. We also continue to be impacted negatively by uncertainty over diesels in Europe along with Brexit and additional diesel taxes in UK. Given these issues, we will remain focused on driving growth and simultaneously reducing costs and boosting operational efficiency and capability, taking the necessary steps to shape our future. We expect sales and financial results to improve over the remainder of the financial year, driven by continued ramp-up of new models, most recently the electric Jaguar I-Pace, and with the new lower duties effective in China.'