Overview

• Revised US trade policy threatened to raise JLR’s tariff rate from 2.5% to 27.5%, but the US-UK deal capped duties at 10%, translating to a £1.6 billion ($2.1 billion) liability.
• Chandrasekaran said JLR’s mitigation strategies aim to shrink the net burden to about £600 million (roughly $790 million).
• The company has launched cost-control initiatives, rerouted supply chains and adjusted vehicle sourcing to reduce tariff exposure.
• Tata Motors will demerge into separate passenger and commercial vehicle businesses by the end of 2025 to sharpen operational focus and improve investor transparency.
• Alternative sourcing efforts mean China’s rare earth magnet export curbs are not expected to disrupt Tata Motors or JLR’s electric vehicle plans.