India-UK FTA augurs well for JLR, future cars expected to benefit: Tata Motors Group CFO
Reuters Representative image
The India-UK free trade agreement augurs well to keep driving JLR's performance in India as it would benefit future cars and enable customers to access global cars and global prices much faster, Tata Motors Group CFO PB Balaji said on Tuesday. On the other hand, further details and clarifications are needed to fully understand the impact on JLR after the US-UK trade deal that reduced US trade tariffs on auto exports from the UK to 10 per cent from 27.5 per cent within a quota of 1 lakh vehicles, Balaji said in an earnings call.
"As far as India-UK FTA is concerned, it is a great development and augurs well for JLR...At the same time, we also wait when the FTA actually comes into force, but we believe this is going to benefit the future cars that are going to come, which means customers will be able to access these global cars and global prices much faster because of this FTA," he said.
Therefore, Balaji said, "It augurs very well for continuing to drive JLR performance in India going forward." He further said, "The current cars that are already there in India, the Range Rover franchise, which is the Range Rover, Range Rover Sport, Evoque, and the Velar, these are already being manufactured in India on a CKD (completely knocked down) basis, so these won't be impacted by this FTA that is coming in."
Under the India-UK FTA concluded last week, tariffs on automotive imports will come down from over 100 per cent to 10 per cent under quotas on both sides, benefiting companies such as Tata Motors-owned Jaguar Land Rover (JLR). However, duty-free quota on EVs is limited only to a few thousand units.
When asked about the implications on JLR's shipments to the US following President Donald Trump's tariff war, Balaji welcomed the announcement to bring down the tariff to 10 per cent on auto exports from the UK to the US saying "directionally it is on the right track". "We await the fine print in terms of timings, when does it change from when? We also need a few clarifications in terms of what is due to parts and accessories... Obviously, the situation is much better than what we were facing before, but I think we will need to wait for a few days before the final clarifications are issued in terms of notifications and the changes, whether it's applicable retrospectively or not," he said. Balaji said it could take about a month for the company to share further details and quantify the impact. "We will maintain a heightened vigil on cost and cash as we navigate that that piece, and we'll probably be able to see the implications of all those in the coming quarters, the benefits of the implication of the tariffs...," he said, adding JLR is continuing to put cost efficiency measures and working on multiple areas, including material and warranty costs to continue to drive growth in the US.
On the US tariff impact on Land Rover Defender -- one of the company's best-selling models in the US -- manufactured at Nitra in Slovakia, Balaji said, "Definitely, it has been impacted by the tariffs there since it is manufactured in Europe. It is at a 25 per cent tariff rate even today, and therefore we will treat it as a full portfolio and find ways to see how we can offset the tariff increases that are there at the same time." He further said, "We remain optimistic that there will be a deal done between EU and US as well, just like what happened between UK and US, but we had to wait for that to happen. We are hopeful that that will happen sooner rather than later." At the same time, he said, "Overall, we will still need to be focused on delivering growth, focused on delivering cost initiatives so that we can manage the impact of the tariffs better."
Asked if JLR would consider setting up a manufacturing unit in the US due to the tariff war, he said, "As far as setting up any factory in the US, it's too recent. We will need to see how it finally stabilises before we are able to take any call on that. Currently, we are on wait and watch mode to understand how the new agreement on tariff is going to play out."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
6 minutes ago
- Economic Times
gold prices today: Gold price prediction: Why did gold fall after hitting a 4-week high and could it rebound soon amid U.S. dollar strength, trade tensions, and key economic data?
ADVERTISEMENT Why did gold prices fall despite hitting a near-month high? How are U.S. trade tensions influencing gold markets? ADVERTISEMENT What global economic factors are affecting gold demand? ADVERTISEMENT What U.S. data are gold traders watching this week? ADVERTISEMENT How did other precious metals perform? Silver fell by 1.5% to $34.26 an ounce Platinum declined 0.6% to $1,056.70 Palladium, however, bucked the trend and rose 0.5% to $993.63 ADVERTISEMENT FAQs: Gold prices dropped on Tuesday, June 3, after briefly touching a four-week high earlier in the day. The retreat came as the U.S. dollar rebounded, making the precious metal more expensive for foreign investors. Spot gold slipped by 0.7% to $3,356.75 an ounce by 11:25 GMT, following an earlier jump to its highest level since May 8. U.S. gold futures were also down, easing 0.5% to $3, to Ole Hansen, head of commodity strategy at Saxo Bank, the slight uptick in the dollar ahead of key U.S. economic data triggered profit-taking after Monday's sharp gains. "Today, the dollar trades a tad stronger... these developments are the main reason why we are seeing some light profit following yesterday's strong gain," Hansen main reason gold prices pulled back is the strengthening of the U.S. dollar. Earlier in the session, the dollar index had hit an over-a-month low, but then reversed course and moved higher. A stronger dollar makes gold, which is priced in dollars, less attractive for international dollar rebound came at a time when investors were also locking in profits after Monday's surge in gold prices, contributing further to the dip. These shifts reflect how sensitive gold is to currency movements and market sentiment, especially during uncertain economic tensions between the United States and China are keeping investors on edge. Market participants are now watching closely for a possible call this week between President Donald Trump and Chinese President Xi Jinping. This comes just days after Trump accused China of violating an agreement to reduce tariffs and trade Europe, the European Commission has pushed back, stating it will urge the U.S. to lower or eliminate tariffs. However, the U.S. is still moving ahead with plans to double steel and aluminum tariffs to 50%. According to a draft letter seen by Reuters, Washington is also pressing countries to submit revised trade offers by Wednesday to speed up negotiations before a five-week Organisation for Economic Co-operation and Development (OECD) added to the cautious outlook on Tuesday, stating that the global economy is expected to slow to 2.9% growth in 2025 and 2026. This is a downgrade from its earlier projections of 3.1% in 2025 and 3.0% in economic slowdown means investors are paying closer attention to safe-haven assets like gold, although short-term fluctuations—like currency shifts and profit-taking—continue to impact eyes are now on Friday's U.S. non-farm payrolls report, a major indicator of economic health. Alongside this, investors are tuning in to speeches from various Federal Reserve officials, seeking clues on the future path of interest generally performs well in low-interest-rate environments, since it doesn't yield interest. If the Fed signals that rates may stay lower for longer, this could boost gold demand dip in gold wasn't isolated. Other precious metals also felt the pressure:These shifts reflect broader market uncertainty and the influence of both currency and economic trends on precious metals dropped due to a stronger U.S. dollar and investor profit-taking after recent over tariffs and talks between Trump and Xi Jinping is keeping gold prices volatile.
Mint
44 minutes ago
- Mint
Zydus buys Agenus' biologics plants in US for $125 mn, licenses cancer therapy
Zydus Lifesciences announced on Tuesday it is acquiring two biologics contract manufacturing facilities in California from US-based Agenus Inc for a total consideration of up to $125 million. The deal includes an upfront payment of $75 million, with the remaining $50 million to be paid over the following three years. The Ahmedabad-based pharmaceutical firm said the acquisition will establish its presence in the rapidly-expanding global biologics contract development and manufacturing organization (CDMO) sector. Zydus is also acquiring a 5.9% stake in Agenus for $16 million, through its wholly-owned subsidiary Zynext Ventures USA LLC, it said in an exchange filing on Tuesday. The drugmaker has also entered into a licensing agreement with Agenus to commercialise its investigational Botensilimab (BOT) and Balstilimab (BAL) combination therapy in India and Sri Lanka. Agenus is a clinical-stage immuno-oncology company committed to developing immune therapies against cancer. The move to acquire biologics manufacturing facilities in the US aligns with Zydus' strategic focus on biologics as a key growth driver this year. Also Read: Glenmark-Ichnos cancer drug shows 74% response in phase-1 trial "The acquisition will give Zydus a strategic foothold in the US for biologics manufacturing in the global hub for biotech innovation, California," managing director Sharvil Patel said in a statement. 'This move strengthens our long-term biologics vision and positions us to better serve the evolving needs of the global biopharmaceutical industry," he added. Additionally, the acquisition gives the company a stronger manufacturing presence in the US, amid ongoing uncertainties over potential American tariffs on pharmaceutical imports. In the company's earnings call last month, Patel had said the company is evaluating opportunities for local manufacturing in the US. 'We have committed to making a good amount of investments in the US with our foray into specialty and other areas," he told investors. Exclusive manufacturer to Agenus Under the terms of the agreement, Zydus will acquire two modern biologics manufacturing facilities from Agenus in Emeryville and Berkeley, California, for an upfront consideration of $75 million and contingent payment of $50 million to be paid over three years subject to achievement of certain revenue milestone. The acquisition provides Zydus immediate access to advanced biologics manufacturing capabilities and a foothold in California, a leading global biotech hub. The move also enables Zydus to 'leverage supply chain dynamics and a favourable geopolitical environment to expand its reach in the U.S. and globally," it said in the release. Also Read: KKR provides $600 mn financing to Manipal Group to fuel its corporate expansion The CDMO business will operate as an independent entity and will house the acquired manufacturing capabilities. As part of the transaction, Zydus will become the exclusive contract manufacturer for Agenus, and provide manufacturing services for the clinical and commercial supply of two identified Phase-3 ready immuno-oncology products - Botensilimab and Balstilimab. Zydus will also have the first right of negotiation to manufacture any of the future pipeline products by Agenus. Agenus reported a turnover of $103.46 million in 2024, according to the exchange filing. Agenus' lead programme comprising Botensilimab and Balstilimab is a next-generation immunotherapy platform designed to strengthen and sustain the immune system's response against tumour cells. The platform, which is currently in advanced clinical trials, has demonstrated significant clinical activity across nine cancer types in more than 1,200 patients, including both late-stage and patients who have undergone neoadjuvant, or primary, therapy. As part of the licensing agreement inked with Agenus, Zydus will be responsible for clinical development and regulatory approvals of the licensed products in India and Sri Lanka and will pay 5% royalty on net sales upon successful approval and commercialization. Also Read: Young heirs take charge as Indian pharma firms plan succession Zydus will expand the reach of the therapy within its initial indications, as well as drive its expansion into other high unmet need indications and earlier lines of treatment, including primary treatments, the company said.
The Print
an hour ago
- The Print
Tourism resilient sector, international visitors will return to Kashmir: WTTC CEO on Pahalgam effect
Simpson, also the CEO of the London-based tourism body, shared some of the projected figures for the Indian tourism sector for 2025 and the 10-year forecast for 2035 in a presentation. She also gave some related insights later in an interaction with PTI Videos on the sidelines of the event. During an interaction here, she also said while there is a need for an 'appropriate round of caution', travellers who have loyally chosen Kashmir as a destination and have been coming to India, 'I think, they are going to continue to come'. New Delhi, Jun 3 (PTI) Describing it as an 'incredibly resilient sector', president of UK-based World Travel and Tourism Council (WTTC), Julia Simpson, on Tuesday expressed optimism about the revival of Jammu and Kashmir tourism that has suffered a huge hit in the wake of the Pahalgam attack. She underlined the recovery made in the Indian tourism sector in the last few years post-Covid pandemic, and asserted that the 'future does look very bright'. Asked if the Pahalgam terror attack will cast a shadow on this tourism recovery trajectory in India, Simpson said the 'situation we're seeing here in India is certainly being stabilised, which is always a good sign'. She underlined the resilient nature of the sector and said people were apprehensive that travellers would not go to the Middle East after the Israel-Gaza conflict or would not travel to Europe after the Russia-Ukraine conflict, but people are travelling to the Middle East and Europe. The WTTC CEO emphasised the current geopolitical anxieties and recalled the terror attack in Kashmir's Pahalgam on April 22. '…we obviously have had a tragic event here in India, but we are seeing wars globally. There's a lot of… and I always say when I talk about travel and tourism, in the concept …and conflict, first of all, we have to remember that there are real human beings and victims who get caught up in these horrendous events,' she said. 'But what I will say, travel and tourism is very, very resilient. Travellers are very sophisticated,' Simpson said. In the Pahalgam attack, 26 people, mostly tourists, including a Nepalese national, were killed while holidaying at the scenic Baisaran Valley. On the steps being taken by the government authorities in India to rebuild tourism and restore peace and security, she invoked the leadership of the country and underlined that things are really being 'managed very well'. 'I mean, obviously we want people to have deep concern about what's happening… You know, it's sort of one day's media clippings, and then people who are loyal to Kashmir and coming to India, I think, are going to continue to come. 'So, I feel very confident that while there is a need to have an appropriate round of caution, I do not think overall it's going to impact travel and tourism,' the WTTC chief said. During her interaction with PTI Videos, she termed travel and tourism as an 'incredibly resilient sector'. 'While these are personal tragedies for the people that are involved, what you tend to see is that travel and tourism remains very, very strong, and it will recover very, very quickly,' she said. 'They (travellers) obviously take advice from their governments about where it is safe to travel, but generally, these situations are resolved, and people start travelling again quite quickly,' Simpson said. Jammu and Kashmir Chief Minister Omar Abdullah is also endeavouring for the revival of tourism in the Valley, leading from the front as he held a meeting of the council of ministers at a resort in south Kashmir's Pahalgam in May, seeking to rebuild confidence of tourists. Jyotsna Suri, Chairperson and Managing Director, The Lalit Suri Hospitality Group, also expressed optimism about the revival of tourism in Jammu and Kashmir after the heavy impact on it post the Pahalgam attack. 'Kashmir has had its highs and lows for the longest time; it's not new. And I can speak from experience, because we've been there for 25 years now, and there were times when, at a stretch of about three to four months, we would have a single guest in the hotel. But we didn't stop, and we continued,' she said. Now, what has happened in Pahalgam is 'so unfortunate', but people will go back. 'Jammu and Kashmir is taking it very seriously, led by the chief minister himself, and, more importantly, the Centre, the prime minister, the home minister, all of them are making an effort… sending out a very positive message that, yes, what has happened is awful, it's terrible, and we grieve those lives that have gone, but it will come back. Tourism will come back to Kashmir,' the CMD of the luxury hospitality group said. Set up in 1980, WTTC says its mission is to maximise the inclusive and sustainable growth potential of the travel and tourism sector through global partnerships. Established over 20 years ago, the World Travel and Tourism Council, India Initiative (WTTCII) works in conjunction with WTTC. An MoU between WTTC and WTTCII was also signed on the occasion. Suri, also vice chairperson of WTTCII, said, 'I am very sure Kashmir will come back with a big bounce once again'. She recalled the terror attack and its aftermath that impacted the rest of the country as well, saying it was not just Kashmir, but Chandigarh as well, where blackouts happened later, owing to its proximity to Amritsar, also affected. 'Again, in Mumbai and Goa, because of proximity to Karachi, there was an impact (on the sector),' Suri said, pointing to hotel booking cancellations by many tourists. PTI KND RHL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
