Tata cuts outlook over JLR’s Brexit and China woes
Indian carmaker hit by slide in sales of diesel vehicles in Europe
Bengaluru/New Delhi — Indian carmaker Tata Motors lowered its profit margin guidance for the current fiscal year after it posted its biggest quarterly loss on Thursday, hurt by an impairment charge for its British luxury car business Jaguar Land Rover (JLR). Tata Motors expects the EBIT (earnings before interest and tax) margin for the fiscal year 2018-19 ending March 31 to be “marginally negative” compared with an earlier guidance of breaking even, CFO PB Balaji said. Troubles at the JLR unit, which has been hit hard by US-China trade tensions, low demand for diesel cars in Europe and Brexit worries, had tipped Tata Motors into its first loss in three years in the quarter ended June 2018. While Tata Motors has announced plans to turn around JLR, the slide in the unit’s sales has continued for now with retail sales in China falling nearly 50% during the quarter ending December 31. “We are now taking clear and decisive actions in JLR to step up its competitiveness, reduce costs and i...
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