New Delhi.
UK’s well-known car company Jaguar Land Rover (JLR) has stopped the US export of its luxury cars. JLR is the subsidiary of Tata Motors. This decision has been taken due to President Trump’s new tariff. This decision will be applicable from 7 April. The Trump government has imposed an import tax of 25% on cars. This has shocked JLR. The company has to change its plan. JLR is very important for India’s Tata Motors. In March last year, JLR sold around 4,30,000 vehicles worldwide. About 1,07,500 vehicles were sold in North America. Tata Motors acquired JLR from Ford Motors in 2008.
JLR has stopped sending vehicles to America because the US has increased import duty. This is harming the company. The company is already having financial problems. The company’s profit fell 17% in January. The reason for this is the decrease in demand and an increase in expenses.
25% import duty on cars in America
25% import duty on cars in the US has come into effect from April 3. JLR is now looking for ways to reduce expenses. The company has 38,000 employees in Britain. The company is trying to reduce the damage caused by Trump’s trade war.
On April 2, JLR said in a statement, ‘Our luxury brands are liked all over the world and our business is strong. We are accustomed to working according to the changing market conditions. Our priority is now to provide services to our customers around the world and follow new business rules with the US. ‘
Indication of major changes in automobile sector
This decision of JLR is a sign of major changes in the automobile sector. Auto companies have to change their supply chain due to Trump’s reciperooky trade policy. Tata Motors’ JLR is now going through a difficult period. This can change international car sales strategies.
There are many challenges in front of JLR. Increased import duty will increase the price of vehicles. This may reduce the demand for JLR vehicles in America. The company will now have to find new markets and reduce expenses.
It will be interesting to see how JLR deal with this difficult situation. The company will have to change its strategy so that it remains in the market. Trump’s decision is causing damage not only to JLR, but also other auto companies. JLR’s decision shows how complex international trade is. The policy of one country also affects other countries. Companies should always be prepared for changing circumstances.
Ready to face difficulties
JLR says he is ready to face difficulties. The company will continue to provide good services to its customers. JLR hopes that she will soon get out of this difficult period.
The company spokesperson said, “America is an important market for JLR’s luxury brands. We are working towards new business conditions with our business partners. We are implementing our short -term actions. It also includes stopping export consignment in April. We are making plans from our mid -term to long -term. The spokesperson said, “Our priorities are now to provide services to our customers worldwide and address the new business conditions of America.”
