Tata Motors does not see any issue in the next quarter owing to the rare earth magnet crisis.
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Check Offers Tata Motors and Jaguar Land Rover‘s production faces no disruption owing to the rare earth magnet crisis. The electric vehicle production of Tata Motors and JLR is unlikely to be affected in the foreseeable future due to the shortage of rare earth magnets, believes Tata Motors Group CFO P B Balaji. However, there are a few challenges in the coming quarters, he said.
During the Tata Motors’ earnings call, Balaji said that the company’s teams are working to sort out the problem, and the company is continuing to de-risk itself and is confident of de-risking itself completely. “Absolutely no impact on production so far, as far as rare earth is concerned, nothing in the foreseeable future,” Balaji asserted when asked if the automaker faced any production impact due to the shortage of rare earth magnets. He further said that the semiconductor crisis has given the brand enough learning and abilities to actually manage challenges of this sort. “So at this point in time, we do not see stress in the domestic business as well as JLR and a lot of interventions put in place to ensure that we keep this pace,” he added.
He further said that the company does not see any issue in the next quarter. However, Balaji said that there are a few challenges in the coming quarters, but that’s something the company will sort out. “Teams are working through the problems as we speak. We feel confident that we will be able to manage it. Currently, we are not having any issues,” said the Tata official.
Tata Motors’ Q1 FY26 net profit falls 63% on JLR slump, US tariff pain
Tata Motors Ltd. has reported a 63 per cent drop in its net profit in the first quarter of this financial year. The parent of Jaguar Land Rover recorded the lower-than-expected quarterly profit owing to softer demand and US trade tariffs. While the softening demand impacted the company’s domestic sales, tariff challenges impacted the global businesses. The company revealed that its net profit tanked to ₹39.2 billion, compared with the same period last year. It fell short of the average profit estimate of ₹40.55 billion based on a Bloomberg survey of analysts.
Tata Motors, in its official statement, said that the US levies had a direct and material impact on profitability and cash flow in the period. “The US-UK trade deal will significantly reduce the financial impact of US tariffs going forward,” it said.
JLR, which typically contributes about two-thirds of the overall revenue, paused shipments to the US for nearly a month in April in response to the US President Donald Trump’s import tariffs. North America is the most important overseas market for the British luxury marque, which sold nearly 100,000 units in the year to March 2024, according to its latest annual report.
Tata’s revenue also suffered from…
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