Latest news with #RichardMolyneux
Mint
24-06-2025
- Automotive
- Mint
JLR to begin production of cars at TaMo's new plant in Tamil Nadu by early 2026
Tata Motors Ltd-owned Jaguar Land Rover (JLR) will begin the production of its vehicles at its parent's new plant in Tamil Nadu by early 2026, a top company official said on Tuesday. JLR will look to begin assembly of completely knocked down (CKD) units at the new plant in Panapakkam in Tamil Nadu, which is expected to attract more than ₹ 9,000 crore investment from Tata Motors. 'We have all the CKD operations currently at Pune. Over a period of time, we will probably migrate it there (the TN facility),' PB Balaji, group chief financial officer at Tata Motors, told reporters in Mumbai. The plant, whose construction began in September 2024, will be used to make Tata Motors and JLR cars with an annual production capacity of more than 250,000 vehicles. The seller of luxury cars such as Defender and Range Rover first began assembling the completely knocked down units of its Land Rover Freelander 2 model in the country in May 2011 at Pune. In 2024, the company began the local assembly of its Range Rover and Range Rover Sport models at the Pune plant in a bid to expand its presence in the country and lower prices. While imports of completely built units of cars attract around 110% tariffs currently, the completely knocked down units of vehicles attract only 16.5% effective tariff rate. Acquired by Tata Motors in 2008 for $2.8 billion, JLR posted its highest ever retail sales numbers in the country in the last financial year. The company's sales jumped 40% to reach 6,183 cars, with the January-March quarter recording a 110% growth to 1,793 car sales. Its best-selling cars in the country include Defender, Range Rover and Range Rover sport. While it currently is not making the Defender models in the country, JLR's chief financial officer Richard Molyneux said during the company's last earnings call on 13 May that 'plans are in process to assemble the cars locally'. The bid to expand presence in India comes at a time when JLR is facing challenges in the global markets. During the investor day held on 16 June, JLR said that it is lowering its earnings before interest and tax margin guidance to 5-7% in FY26 from the earlier stated 10% due to the impact of US tariffs and slowdown in the Chinese market. Its profit after tax also fell 30% in FY25 to 1.8 billion pounds from 2.6 billion pounds in FY24. Meanwhile, the country's luxury car market has continued to grow, driven by demand for premium vehicles. In FY25, luxury car sales in the country touched an all-time high of 51,000 units. With its local assembly leading to price cuts of up to ₹ 44 lakh for its models last year, JLR managed to dethrone Audi India from the third position. The UK-based company is responsible for 71% of Tata Motors' overall revenue and 79% of its overall profits.
Time of India
16-06-2025
- Automotive
- Time of India
Tata's JLR slashes FY26 EBIT margin guidance to 5–6% on higher EV investment, product transition
Jaguar Land Rover (JLR), the UK-based luxury carmaker owned by Tata Motors , has significantly lowered its earnings before interest and tax (EBIT) margin guidance for FY26 to 5–6%, from the previously stated 10%, as it gears up for a year of high capital investment, model changeovers, and an accelerated push toward electrification. The revised outlook was shared as part of the company's Investor Day presentation on June 16, where top executives outlined their medium-term roadmap and strategic priorities. CEO Adrian Mardell described FY26 as a 'year of transformation,' driven by planned launches of new-generation vehicles and the start of production of key electric models. These developments, he said, will exert pressure on margins and cash flows in the short term but are essential to setting the business up for sustainable growth. The lower margin forecast is attributed to several overlapping factors—elevated capital expenditure, working capital outflows linked to model changeovers, and upfront costs related to electric vehicle (EV) manufacturing readiness across plants. The company expects capex to rise to £3.5 billion in FY26, compared to £3.2 billion in FY25. This spike will fund tooling, product development, and upgrades to manufacturing sites, including the Halewood plant, which is being converted into JLR's first all-electric facility. With its multi-architecture strategy encompassing MLA, EMA and the new JEA platforms, JLR is betting on a flexible approach to transition its portfolio. The first pure-electric Range Rover is expected to roll out in 2025, while an all-new electric Jaguar GT, built on the bespoke JEA architecture, will follow in 2026. Jaguar will become an electric-only brand by then, focusing on high-performance, low-roof GTs priced upwards of £100,000. Even as FY26 is expected to be a transition year, the company reiterated confidence in its long-term targets. By FY27, JLR aims to achieve EBIT margins of over 10%, free cash flows of more than £2 billion, and revenue per unit above £80,000, up from around £71,000 in FY25. The management views the current investment phase as a necessary step to unlock this future value. CFO Richard Molyneux said that despite the near-term margin compression, the business model is designed to generate operating leverage once the new models ramp up and premiumisation gathers pace. JLR's four-brand strategy—spanning Range Rover, Defender, Discovery and Jaguar—remains central to its premium positioning. The company is focused on developing unique identities, customer experiences, and design languages for each brand while continuing to drive average transaction values through special editions and bespoke offerings. Products like the Range Rover SV and Defender 130 have helped JLR increase pricing power, a trend the company expects to continue. Operationally, JLR ended FY25 on a strong note. Wholesales excluding the China JV grew by 25% to 401,000 units, while EBIT margins improved to 8.5% from 4.9% in the previous year. Net debt declined to £0.7 billion, and the company is on track to become net debt-free by the end of FY25. Liquidity stood at £5.3 billion, providing a buffer for the high-spend year ahead. While the FY26 guidance reset has tempered short-term investor expectations, analysts say JLR's strategic direction remains sound. The coming year will test the company's ability to execute on its product, EV, and brand strategies under tighter margins, but the broader narrative of transformation and premium-led growth remains intact.
Mint
16-06-2025
- Automotive
- Mint
JLR holds back revenue guidance, projects hit to profitability in FY26
Jaguar Land Rover Automotive PLC, the UK-based subsidiary of Tata Motors Ltd, did not give revenue guidance to its investors, even as it projected that operating profitability would suffer in 2025-26 due to US tariff hikes and a slowdown in the Chinese market. Tata Motors' shares went into a tailspin, falling 4% during trading hours on Monday after JLR's commentary. The company, which contributed 71% to its parent's total revenue and 79% to its total operating profit in 2024-25, has guided for operating profit margin in the range of 5-7%, which is lower than 8.4% it recorded in the last fiscal, as it would face higher tariffs in North America, its largest market. In its previous presentations to investors, it had projected that its operating profit margin would reach 10% by 2025-26. JLR is also projecting a hit to its free cash flow in the current fiscal year, which is expected to reach close to zero from £1.4 billion recorded in 2024-25. Its stated long-term vision is to reach a 15% operating profit margin. In 2024-25, its revenue fell 0.1% to £28.9 billion while profit after tax declined 30% to £1.8 billion. Retail sales declined 0.6% to 428,854 units. The luxury car maker's management expects to bounce back to the growth path in 2026-27 and 2027-28 after it adapts to the impact of the global macro environment. In March, US President Donald Trump announced the imposition of 25% tariffs on auto-related imports. Since JLR has plants in the UK and the European Union, it paused shipments to the US in April to assess the impact of the tariffs. While it got a partial relief after the US signed a free trade agreement with the UK in May, the outlook on tariffs from the EU still remains uncertain. Besides, even after the deal with the UK, the tariffs JLR will face in the US market are higher than what it previously faced on its exports. 'Where we stand today is that we'll pay a 300% increase on the tariffs we used to pay in the UK, so going from 2.5% to 10%. We'll also pay a 1,000% increase on the prior tariffs on Defender and Discovery out of our EU plant,' Richard Molyneux, chief financial officer at JLR, told investors during Tata Motors' post results earnings call on 13 May. Analysts have noted that JLR will likely see volume contraction in the current fiscal year, which will impact Tata Motors' consolidated earnings. 'JLR is facing multiple headwinds, which include tariff-led uncertainty for exports to the US, demand weakness in key regions like Europe and China, and rising VME (variable marketing expenses), warranty and emission costs,' analysts at Motilal Oswal Financial Services wrote in a 10 June note. Agreeing with the observations in the Motilal Oswal note, Raghunandhan NL, Manav Shah, and Rahul Kumar of Nuvama Institutional Equities said the path ahead for JLR appears to be difficult in the near term. 'In JLR, discontinuance of 'Jaguar' models, loss of market share in the China region and imposition of tariffs in the US region, shall lead to a volume contraction ahead,' the analysts wrote in a 10 June note. JLR decided in 2024 to discontinue all Jaguar models, including XE, XF, XF Sportwagon, and F-Type, barring one. It plans to make Jaguar an all-electric brand by 2026.
Economic Times
16-06-2025
- Automotive
- Economic Times
Tata's JLR slashes FY26 EBIT margin guidance to 5–6% on higher EV investment, product transition
Jaguar Land Rover, owned by Tata Motors, anticipates lower profit margins in fiscal year 2026. This is due to significant investments in electric vehicles and model upgrades. The company is converting its Halewood plant for EV production. JLR expects higher capital expenditure. Despite short-term challenges, JLR aims for improved margins and cash flow by fiscal year 2027. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Jaguar Land Rover (JLR), the UK-based luxury carmaker owned by Tata Motors , has significantly lowered its earnings before interest and tax (EBIT) margin guidance for FY26 to 5–6%, from the previously stated 10%, as it gears up for a year of high capital investment, model changeovers, and an accelerated push toward electrification. The revised outlook was shared as part of the company's Investor Day presentation on June 16, where top executives outlined their medium-term roadmap and strategic Adrian Mardell described FY26 as a 'year of transformation,' driven by planned launches of new-generation vehicles and the start of production of key electric models. These developments, he said, will exert pressure on margins and cash flows in the short term but are essential to setting the business up for sustainable growth. The lower margin forecast is attributed to several overlapping factors—elevated capital expenditure, working capital outflows linked to model changeovers, and upfront costs related to electric vehicle (EV) manufacturing readiness across company expects capex to rise to £3.5 billion in FY26, compared to £3.2 billion in FY25. This spike will fund tooling, product development, and upgrades to manufacturing sites, including the Halewood plant, which is being converted into JLR's first all-electric facility. With its multi-architecture strategy encompassing MLA, EMA and the new JEA platforms, JLR is betting on a flexible approach to transition its first pure-electric Range Rover is expected to roll out in 2025, while an all-new electric Jaguar GT, built on the bespoke JEA architecture, will follow in 2026. Jaguar will become an electric-only brand by then, focusing on high-performance, low-roof GTs priced upwards of £100, as FY26 is expected to be a transition year, the company reiterated confidence in its long-term targets. By FY27, JLR aims to achieve EBIT margins of over 10%, free cash flows of more than £2 billion, and revenue per unit above £80,000, up from around £71,000 in FY25. The management views the current investment phase as a necessary step to unlock this future value. CFO Richard Molyneux said that despite the near-term margin compression, the business model is designed to generate operating leverage once the new models ramp up and premiumisation gathers four-brand strategy—spanning Range Rover, Defender, Discovery and Jaguar—remains central to its premium positioning. The company is focused on developing unique identities, customer experiences, and design languages for each brand while continuing to drive average transaction values through special editions and bespoke offerings. Products like the Range Rover SV and Defender 130 have helped JLR increase pricing power, a trend the company expects to JLR ended FY25 on a strong note. Wholesales excluding the China JV grew by 25% to 401,000 units, while EBIT margins improved to 8.5% from 4.9% in the previous year. Net debt declined to £0.7 billion, and the company is on track to become net debt-free by the end of FY25. Liquidity stood at £5.3 billion, providing a buffer for the high-spend year the FY26 guidance reset has tempered short-term investor expectations, analysts say JLR's strategic direction remains sound. The coming year will test the company's ability to execute on its product, EV, and brand strategies under tighter margins, but the broader narrative of transformation and premium-led growth remains intact.
Time of India
16-06-2025
- Automotive
- Time of India
Tata's JLR slashes FY26 EBIT margin guidance to 5–6% on higher EV investment, product transition
Mumbai: Jaguar Land Rover (JLR), the UK-based luxury carmaker owned by Tata Motors , has significantly lowered its earnings before interest and tax (EBIT) margin guidance for FY26 to 5–6%, from the previously stated 10%, as it gears up for a year of high capital investment, model changeovers, and an accelerated push toward electrification. The revised outlook was shared as part of the company's Investor Day presentation on June 16, where top executives outlined their medium-term roadmap and strategic priorities. CEO Adrian Mardell described FY26 as a 'year of transformation,' driven by planned launches of new-generation vehicles and the start of production of key electric models. These developments, he said, will exert pressure on margins and cash flows in the short term but are essential to setting the business up for sustainable growth. The lower margin forecast is attributed to several overlapping factors—elevated capital expenditure, working capital outflows linked to model changeovers, and upfront costs related to electric vehicle (EV) manufacturing readiness across plants. Also Read: Tata Motors shares fall 5% after JLR projects flat cashflow and lower FY26 margins by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The company expects capex to rise to £3.5 billion in FY26, compared to £3.2 billion in FY25. This spike will fund tooling, product development, and upgrades to manufacturing sites, including the Halewood plant, which is being converted into JLR's first all-electric facility. With its multi-architecture strategy encompassing MLA, EMA and the new JEA platforms, JLR is betting on a flexible approach to transition its portfolio. The first pure-electric Range Rover is expected to roll out in 2025, while an all-new electric Jaguar GT, built on the bespoke JEA architecture, will follow in 2026. Jaguar will become an electric-only brand by then, focusing on high-performance, low-roof GTs priced upwards of £100,000. Live Events Even as FY26 is expected to be a transition year, the company reiterated confidence in its long-term targets. By FY27, JLR aims to achieve EBIT margins of over 10%, free cash flows of more than £2 billion, and revenue per unit above £80,000, up from around £71,000 in FY25. The management views the current investment phase as a necessary step to unlock this future value. CFO Richard Molyneux said that despite the near-term margin compression, the business model is designed to generate operating leverage once the new models ramp up and premiumisation gathers pace. JLR's four-brand strategy—spanning Range Rover, Defender, Discovery and Jaguar—remains central to its premium positioning. The company is focused on developing unique identities, customer experiences, and design languages for each brand while continuing to drive average transaction values through special editions and bespoke offerings. Products like the Range Rover SV and Defender 130 have helped JLR increase pricing power, a trend the company expects to continue. Operationally, JLR ended FY25 on a strong note. Wholesales excluding the China JV grew by 25% to 401,000 units, while EBIT margins improved to 8.5% from 4.9% in the previous year. Net debt declined to £0.7 billion, and the company is on track to become net debt-free by the end of FY25. Liquidity stood at £5.3 billion, providing a buffer for the high-spend year ahead. While the FY26 guidance reset has tempered short-term investor expectations, analysts say JLR's strategic direction remains sound. The coming year will test the company's ability to execute on its product, EV, and brand strategies under tighter margins, but the broader narrative of transformation and premium-led growth remains intact.
