Tata Motors’ shares slid more than 5 percent to ₹673 on 16 June after its luxury subsidiary, Jaguar Land Rover (JLR), warned in an investor presentation that free cash flow could be “close to zero” in FY 26 and outlined a host of macro‑economic threats.
JLR said it would keep investing and target an EBIT margin of 5–7 percent, while stressing that its “Reimagine” transformation programme must stay on track to unlock about £1.4 billion in annual savings. The carmaker pointed to multiple existing and emerging challenges—ranging from the lingering chip shortage and flooding at an aluminium supplier to surging vehicle thefts in the UK and potential headwinds such as US tariffs, the pivot to battery‑electric vehicles, stricter regulations, and evolving customer tastes.
In China, the world’s biggest auto market, JLR expects the premium segment to shrink roughly 15 percent in FY 25 amid intense competition, weaker credit growth, and dealership closures, even though the brand has been outperforming the overall market. To soften the blow of the 27.5 percent tariff on vehicles shipped from the UK and Slovakia, the company suspended US deliveries in April, is reassessing prices, and is redirecting inventory to more profitable regions.
Meanwhile, Tata Motors’ consolidated net profit for the March‑quarter fell 51 percent year‑on‑year to ₹8,470 crore, while revenue inched up 0.4 percent to ₹1,19,503 crore, missing analysts’ forecasts. Around 10 a.m., the stock was trading at ₹677 on the NSE, down 5 percent for the session and 8 percent since the start of the year.
