India-UK FTA to cut prices of imported JLR cars in India, but not local models: Tata Motors Group CFO PB Balaji

The recently signed free trade agreement (FTA) between India and the UK will soon allow Indian customers to buy Jaguar Land Rover (JLR) cars at global prices, said Tata Motors group chief financial officer PB Balaji on Wednesday. The deal, however, is not expected to bring down prices of the existing models in India like Range Rover, Range Rover Sport, Evoque, and Velar, he added during a media conference call after Tata Motors announced its fourth-quarter earnings.

As part of the FTA, the two countries have decided to lower tariffs on 99% of Indian exports and make it easier for British firms to export whisky, cars and other products to India.

“If you look at the Range Rover franchise in India, Range Rover, Range Rover Sport, Evoque, Velar are already localised and manufactured as part of a CKD (completely knocked down) operation in Pune. There is no impact of the FTA on these cars. No changes in price are expected in any of these at this point,” said Balaji.

At the same time, the ability of Indian car buyers to access JLR cars at global prices has gone up significantly because of the FTA, the Tata Motors Group CFO said. “We will have to see the fine print. There are quotas in it. There is also reduction over a phased period. We can only interpret only when we see the fine print,” said Balaji.

JLR pipped German carmaker Audi to become the third-largest luxury carmaker in India in FY25. JLR India sales grew 40% year-on-year to 6,183 units last fiscal, ahead of Audi's 5,990 units.

During the fourth quarter, JLR delivered its tenth consecutive profitable quarter and achieved its net debt zero target.

While the India-UK FTA augurs well for JLR in India, the Tata group-owned automaker will take a call on setting up a new manufacturing unit in the country. “As far as the Indian manufacturing set up is concerned, that is a long-term decision," Balaji said as he added that the fine print of the FTA is being awaited to take appropriate decisions.

Meanwhile, Tata Motors welcomed the U.S.-U.K. trade deal which reduces tariffs on U.K. auto exports to the U.S. from 27.5% to 10%, within a quota of 100,000 vehicles. The trade deal provides relief from the sudden and steep tariffs applied to the auto sector in April by US President Donald Trump.

“We have a few clarifications in terms of timeframe, parts and accessories but the situation is much better than what we were facing before,” Balaji said as the fine print of the deal is being awaited.

Amid the U.S. tariffs, Balaji emphasised there is now a need to maintain vigil on cost and cash. “The premium luxury business is expected to weather the storm relatively better. Some number of implications will be there, but we believe there are other markets that are very strong for us, like the UK. There are other markets to grow as well,” Balaji said, adding that business fundamentals are in fine fettle. “From a cost and cash perspective, we will keep it extremely tight,” he added.

“In this environment of heightened uncertainty, we will remain agile, proactively drive our growth agenda, reduce our cash breakeven further whilst continuing to invest in our future. With the shareholders also approving the demerger, we are on track to realise the full potential of each of the businesses,” said Balaji.