Jaguar Land Rover has been a wholly owned subsidiary of Tata Motors since 2008, when Tata Motor acquired it from Ford. It sold a total of 462,678 vehicles during 2014.
Tata Motors’ fears a significant loss in the revenues from Jaguar Land Rover, in the event of Britain’s exit from the European Union. The company had estimated a revenue decrease of nearly $ 1.37 billion (1 billion pounds) in this event. The hit is expected from a 10% levy on vehicles …show more content…
The vehicles produced in this plant will not be subject to tax levies. This new plant is expected to start production in 2018. Experts also believe that the UK government will try to work out a strategy to incentivize the automobile industry, as it is largest employer, in the next 2-3 years before the tax barriers are …show more content…
Though it was not as expected, Jaguar Land Rover, reported its best ever July retail sales of 44,486 vehicles, up 34% compared to July 2015. The month’s record performance has been driven by strong sales of the Land Rover Discovery Sport, the Jaguar XE and the F-PACE. Jaguar Land Rover sold 336,052 vehicles in the first seven months of 2016, up 23% on the same period in the prior year.
Brexit may have adverse impact on Jaguar Land Rover's operations
United Kingdom's exit from the European Union (EU) may affect adversely operations at Jaguar Land Rover (JLR), which contributes almost 90% to profits of auto major Tata Motors.
While the direct ramifications of exit of UK from EU on JLR's India operations could be limited, the adverse impact on sales in and sourcing from the region is likely to affect profitability of the global firm.. This willindirectly affect Tata Motors' consolidated earnings, given its exposure to JLR's volumes, margins and movements of the British pound.
In the UK, JLR a member of the Society of Motor Manufacturers and Traders' (SMMT), had cautioned exiting the EU would increase costs and threaten