Tata Motors Ltd, headquartered in Maharashtra, India, reported an 11% decline in its net profit for FY25 due to margin pressures at its UK-based luxury car unit Jaguar Land Rover (JLR). JLR’s profitability was hit by increased discounts and international trade uncertainties.
Tata Motors Ltd, India’s largest passenger vehicle manufacturer, reported an 11% drop in net profit for the financial year 2024-25. The decline was driven by margin pressure at its UK-based subsidiary, Jaguar Land Rover (JLR), which accounts for nearly 69% of the group’s total revenue.
Tata Motors, part of the Tata Group and based in Maharashtra, is a key player in the Indian and global automotive market, producing a range of vehicles from passenger cars to commercial trucks. Its British arm, JLR, has been a significant contributor to its global presence since its acquisition in 2008 for $2.3 billion.
The company’s consolidated net profit fell to ₹28,100 crore in FY25, down from ₹31,800 crore in FY24. The Ebitda margin shrank by 100 basis points to 13.1% due to lower profitability in JLR, whose own margin fell by 160 basis points to 14.3%. JLR’s revenue remained flat at £28.9 billion.
In Q4 of FY25, Tata Motors posted revenue of ₹1.19 trillion, up just 0.4%, while net profit halved to ₹8,600 crore. The previous year’s profit had been boosted by a deferred tax asset of ₹8,300 crore, making the year-on-year comparison less favorable.
Despite the tough conditions, Tata Motors’ group CFO, P.B. Balaji, highlighted that the company achieved record revenue and profit before tax for its India business and became net debt-free. However, the company refrained from giving forward-looking guidance for JLR, citing evolving trade dynamics, particularly due to tariffs introduced by former US President Donald Trump.
JLR, which gets nearly 25% of its sales from North America, paused shipments to the US in April due to these trade issues. Although exports have since resumed, the company has not yet clarified the full financial impact. The US-UK trade deal is expected to reduce tariffs from 25% to 10%, still higher than the previous 2.5%.
Domestically, Tata Motors saw its passenger vehicle revenue fall 7.5% to ₹48,445 crore and commercial vehicle revenue decline 4.7% to ₹75,053 crore. Global vehicle volumes fell 3% to 366,000 units in the January–March quarter.
Balaji expressed cautious optimism, stating that demand in the UK and Europe is improving. Yet, with geopolitical and economic challenges continuing, Tata Motors’ outlook, especially for JLR, remains uncertain.
