JLR adjusts FY26 EBIT margin forecasts over uncertainty in the automotive industry
British luxury car manufacturer Jaguar Land Rover (JLR) has revised its previous revenues in interest and tax (EBIT) margins for 2026 from the past 10% to 5%-7%.
The adjustments are especially caused by uncertainty in the global automotive industry due to US tariffs, Reuters reports.
Shares in JLR’s Indian parent company Tata Motors fell by up to 5.2% in early trading after the announcement.
JLR also forecast near zero-free cash flow for fiscal year 2026.
After the Trump administration imposed a 25% obligation on foreign-made vehicles, the company won more than a quarter of its sales from the US and suspended cargo to the country.
Automakers are also considering relocating units to “accessible markets” to increase profitability.
JLR News comes when US President Donald Trump signed an executive order yesterday to reduce tariffs on British cars exported to the US.
According to an executive order released by the White House, the deal reaffirms the allocation and tariff rates for British-made vehicles.
The order will allow 100,000 UK cars to be imported into the US each year at a 10% tariff, lower than the 25% tariff imposed on other countries.
The terms of this trade agreement were outlined last month.
The JLR Range Rover SUV lineup is manufactured in the UK, while its defender is produced in Slovakia. Slovakia is an EU member who has not signed a trade agreement with the Trump administration.
JLR evaluates US pricing strategies to mitigate the impact on tariffs, but it may have less impact due to a rich customer base that may absorb higher costs.
However, unlike competitors such as Mercedes-Benz and BMW, Tata Motors reports that JLR is exposed to the most US duties of any Indian automaker due to a shortage of local manufacturers in the country.
In January, JLR and Tata Communications strengthened their partnership to improve JLR connectivity Vehicle Ecosystem Through the Tata Communications Move platform.
“JLR adjusts forecasts for FY26 EBIT margins over uncertainty in the automotive industry” was originally created and published Just automatica brand owned by GlobalData.
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