JLR Posts Steady Sales In FY25, Achieves Net Cash Milestone

Jaguar Land Rover, the wholly owned luxury subsidiary of Tata Motors Ltd. reported on Monday that its wholesales for the full year stood at 400,898 units, largely unchanged from the previous year. Retail sales were steady at 428,854 units. In the March quarter, wholesales rose 1.1% year-on-year to 111,413 units, while retail sales declined 5.1% to 108,232 units.

The product mix remained strong, with the high-margin Range Rover, Range Rover Sport and Defender accounting for 67.8% of full-year wholesales and 66.3% in the March quarter.

Regionally, March quarter wholesales increased in North America by 14.4% and in Europe by 10.9%, while remaining flat in the UK. Volumes declined in China and other overseas markets by 29.4% and 8.1%, respectively.

Additionally, JLR has ended financial year 2025 in a net cash positive position — a key milestone under its Reimagine strategy. But Morgan Stanley has flagged risks to future cash flows as the carmaker pauses exports to the United States in April following new import tariffs.

Tariff Troubles

A JLR spokesperson confirmed to NDTV Profit on Friday that the company has temporarily halted shipments to the US in April, as it works to address the new trading terms with business partners.

“The USA is an important market for JLR's luxury brands. As we work to address the new trading terms with our business partners, we are enacting our short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans,” the company said.

The move follows a 25% tariff imposed by US President Donald Trump via executive order on April 2. The tariff applies immediately to fully assembled cars and will extend to auto components from May 3.

Morgan Stanley expects the export pause to the US to impact Jaguar Land Rover's performance in financial year 2026. The brokerage warned that if the tariffs persist and JLR absorbs the full cost, it could push the company's free cash flow into negative territory — potentially to the tune of 500 million British pounds. It added that weak free cash flow and a broader slowdown in India could weigh on Tata Motors stock, dragging it closer to its bear case of Rs 416.

Still, the company's performance in the March quarter was strong, helping it reach its net cash positive position — a core target under its Reimagine strategy. The company aims to be carbon net zero across its supply chain, products and operations by 2039, and has committed to science-based targets to cut emissions by 2030. Jaguar will go fully electric, while electric versions of Range Rover, Discovery and Defender are due before 2030.

JLR will announce its full-year earnings in May and share guidance for financial year 2026 at that time, it added.