Top Mutual Funds
- 05 May 2025
- ICICIdirect Research
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JAGUAR LAND ROVER (JLR) HAS RESUMED EXPORTS OF ITS VEHICLES TO THE UNITED STATES
TATAMOTORS - 708 Change: -13.10 (-1.82 %)News: According to media sources, Jaguar Land Rover (JLR) has resumed exports of its vehicles to the United States after a nearly month-long pause prompted by the imposition of a 25% tariff on imported cars and light trucks by the U.S. The first shipments left Britain on Wednesday following the suspension announced in April, during which JLR evaluated how to mitigate the impact of the tariffs. Despite the tariffs still being in effect, JLR, is implementing short-term measures while developing mid- to long-term strategies to address the new U.S. trading terms.
View: North America (largely US) is the largest market for Tata Motors overseas luxury PV arm i.e. JLR (share in volumes for JLR is pegged at 33% for 9MFY25). The majority of JLR vehicles sold in the US are produced in UK. No sales in April for JLR in its largest market in the first month of the new fiscal year implied a weaker full-year growth for the company. But after resumption of these exports along with news coming in about relaxation in the tariffs, we believe a favourable deal between USA & UK could be concluded very soon and this shall remove the dark clouds of uncertainty over JLR. This is sentimentally positive for the company. The stock post its recent correction, is discounting extreme pessimist scenario and trades at inexpensive valuations, offering good entry point for long term wealth creation.
Impact: Positive