The British luxury carmaker Jaguar Land Rover (JLR) has slashed its margin forecast for the 2026 financial year.
On Monday, the company revised its expected return to a range of five to seven percent, down from a previously anticipated margin of ten percent. The new forecast also falls below last year's figure of 8.5 percent. Additionally, JLR now expects to achieve only a near-zero free cash flow.
This adjustment comes amid uncertainty in the automotive sector triggered by U.S. President Donald Trump's tariff policies. Unlike rivals such as Mercedes-Benz and BMW, JLR does not operate its own manufacturing plants in the United States, leaving it particularly vulnerable to the impact of tariffs.
Following the announcement, shares in Indian parent company Tata Motors dropped by as much as 5.2 percent in early trading.
(Reporting by Kashish Tandon and Nandan Mandayam; writing by Moawis Ahmed; editing by Philipp Krach.)
