Tata Motors Faces Profit Decline Amid Global Trade Pressures

Tata Motors reported a significant 62.2% drop in consolidated net profit to Rs 4,003 crore for the June quarter, with challenges including JLR's reduced profitability due to US tariffs and a decline in sales volumes across segments. Despite these hurdles, Tata Motors remains optimistic about future prospects.

Devdiscourse News Desk | New Delhi | Updated: 08-08-2025 18:12 IST | Created: 08-08-2025 18:12 IST

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Tata Motors has announced a stark 62.2% decline in its consolidated net profit, reporting Rs 4,003 crore for the June quarter. This downturn, compared to Rs 10,587 crore from the previous year, stems from volume declines across all segments and reduced profitability at Jaguar Land Rover (JLR), primarily owing to US trade tariffs.

In addition to the financial challenges, JLR's revenues dipped by 9.2% due to new US tariffs on UK and EU-produced cars. Despite this, the recent UK-US trade deal is expected to mitigate these impacts in future quarters. Tata Motors plans further investment in developing next-generation electric vehicles like the new Range Rover and Jaguar models.

The company remains hopeful for upcoming quarters, banking on recovering demand, particularly in its electric vehicle segment, and strategic new launches to drive growth. It also cites favorable monsoon forecasts, repo rate reductions, and infrastructure developments as reasons for optimism in the commercial vehicle sector.

(With inputs from agencies.)