Tata Motors' JLR fears huge losses from Brexit: Report

JLR\'s most recent annual results showed the company made 1.56 billion pounds pre-tax profit on revenues of 22.2 billion pounds.

Published: 23rd June 2016 12:52 AM  |   Last Updated: 23rd June 2016 12:52 AM   |  A+A-


LONDON: Tata Motors-owned Jaguar Land Rover (JLR) has reportedly predicted an estimated 1 billion pounds loss by 2020 in the event of Britain's exit from the European Union (EU) in tomorrow's referendum.

The luxury car firm, which has witnessed a major turnaround in its fortunes under the Tata Group's charge over the last few years, is believed to have conducted an internal analysis of the likely impact of Brexit, The Telegraph said.

The analysis expects the 1 billion pounds hit to come from a 10 per cent levy on vehicles being exported to Europe and 4 per cent on imports of components for the production of vehicles, the newspaper said.

A company spokesperson declined to give details, saying the study was for internal use only and that the company had analysed a variety of future scenarios.

However, the company's stance on referendum has been clearly in favour of remain in the run up to tomorrow's in-out referendum.

In a letter to JLR staff, company CEO Ralf Speth wrote that the automotive major was "convinced that we will be a stronger business – and a stronger country - if the UK remains a member of the European Union".

"If the UK was to leave the EU, it would become more difficult to buy components and sell our products in our largest market," he said.

Earlier, Ken Gregor, Chief Financial Officer (CFO) of JLR, had said in a joint statement with other colleagues from the UK's auto industry: "Remaining in the EU – our largest market– will increase Jaguar Land Rover's chances to grow, create jobs and attract investment in future technologies.

"Our European supply chain has been fundamental in helping us to meet customer expectations worldwide and achieve sustainable, profitable growth."

JLR's most recent annual results showed the company made 1.56 billion pounds pre-tax profit on revenues of 22.2 billion pounds.

Europe represented 24 per cent of the total sales of 521,571 vehicles, making it the single biggest market for the company, ahead of the UK at 20 per cent.

Stay up to date on all the latest World news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp