The India-UK free trade agreement, which proposes to lower auto tariffs to 10% from more than 100% at present, is directionally on the right track, but Tata Motors is awaiting the fineprint, according to Balaji. That said, Range Rover SUVs—which are already made in India at Chakan near Pune—won’t see a price impact but JLR’s future products will.
“JLR could see some market share gains in India,” Arvind Sharma, director, equity research – India Autos & Transportation at Citi, said in a May 7 note. “While absolute volumes are limited—JLR’s India sales stood at 6,200-odd units in FY25—it could gain some market share from some of the European OEMs like Mercedes-Benz (19,000 units in FY25), BMW (15,800 units in FY25) and Audi (6,000 units in FY25).”
The US-UK trade deal, which reduces auto tariffs to 10% from 27.5% on up to 100,000 cars, is yet another tailwind for JLR—the carmaker had paused US exports in April after US President Donald Trump announced a 25% tariff on all car imports. That was significant, since the US accounts for a fourth of JLR’s volumes and revenue.
“We will continue to engage with the UK government on the details of the trade deal,” Tata Motors said. “Our priority is to ensure we deliver for our global clients and protect margins.”
To be sure, the immediate business prospects remained hazy due to too many moving parts—tariff wars, trade deals, and a demerger, Balaji said in a post-earnings media scrum. A clearer picture is likely to emerge after the company’s Investor Day on 15 June.
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