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earnings | IST

Fixed costs for Jaguar Land Rover have to be brought down, says newly-joined Tata Motors' CFO

The fixed costs for Tata Motors' Jaguar Land Rover (JLR) production will have to be brought down, said PB Balaji, CFO of the company, adding that the auto major is trying to get its cost structure in place.
He said that the UK still remains a challenging market for JLR.
Auto major Tata Motors on Wednesday reported a 50% year-on-year drop in consolidated net profit at Rs 2,175 crore for the March quarter. Jaguar Land Rover (JLR) margins fell 200 basis points.
“As far as Jaguar Land Rover (JLR) is concerned, the UK remains a challenging market. We have called that out explicitly and at the same time you shouldn’t forget the China market continues to do very well for us and rest of the world continues to do pretty well for us,” said Balaji.
He said the company expects both, growth and profitability to be better this year than last financial year. While, JLR's  EBITDA margin is expected to increase by 300 to 400 basis points by the financial year 2020-21.
On product pipeline front, Balaji said, “We are quite confident with the product pipeline that we have and therefore we look forward to a pretty exciting 2019.”