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Post by : Jyoti Gupta
Photo:Reuters
Jaguar Land Rover, a famous car company, has said it will make less profit in 2026 than it first thought. The company now expects to earn only 5% to 7% profit, instead of the 10% it hoped for. This is because the United States has put a big tax (25%) on cars made in other countries. Because of this, Jaguar Land Rover stopped sending cars to the US for a while. Now, it is trying to sell more cars in other countries where it is easier to make money.
The company is also talking to the US and UK governments to get better deals for selling cars in the US. For now, the UK can send 100,000 cars a year to the US with a smaller tax (10%), but cars from other places have to pay a bigger tax.
Jaguar Land Rover says it might have to raise car prices in the US to cover the extra costs. Experts think rich customers might still buy these cars, even if they cost more. But Tata Motors, which owns Jaguar Land Rover, is having a tough time because it does not make cars in the US like some other companies do. After the news, Tata Motors’ share price went down.
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