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Jaguar Land Rover Business Is Spiraling Down In China

The classic Jaguar is now under the stewardship of Indian automaker Tata Motors. After the acquisition, Jaguar has witnessed its business soaring up in the sky. But now the legacy is under the threat. Jaguar Landrover business is plummeting in China’s market due to the US-China trade war, Brexit, and signs of slow down of the global economy have steeped down the global sales by 12% in May 2019.

The CIBM analyst Amethe said that the Jaguar’s performance was on peak in 2016 but now he feels that the worst is near for Jaguar Landrover. “Management efforts to cut costs and turn around have started yielding results in the UK and USA. But China is taking longer than expected to revive,” he said.

On Friday, Tata Motors share price dropped by 3%. In Indian markets, the company’s sales are struggling due to the shrinking auto dealers. Its shares fell down after Moody’s Corporation, an American credit rating agency stated out its statement.

“The downgrade reflects Moody’s expectation that leverage will remain elevated and free cash flow negative for fiscal years 2020 and 2021 as Jaguar seeks to turnaround  performance in China, executes its restructuring program and continues to invest in its future model lineup  including electrification,” said Tobias Wagner, Vice President and Senior Analyst at Moody’s.

Talking about the electrification, Jaguar Landrover is launching its electric XJ replacement on a new Modular Longitudinal Architecture platform that will be used in an all-electric,  plug-in hybrid, and mild-hybrid drivetrains. Autocar reports that “Land Rover wants the first electric Range Rover to be a stand-alone model. This will be a tall estate with more car-like qualities than other models in the line-up and more limited off-road prowess.”

But the company is not only focusing on its MLA platform, but Jaguar also will be building its I-Pace platform. It is also worth noting that Jaguar has announced its EV development with BMW.

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Julie Halpert
My goal is to fill my days writing and editing, either on a freelance, project or full-time basis. I also co-teach a journalism course and would be delighted to expand the time I devote to instruction on the craft of journalism, either in the classroom or as a media coach. I'm always eagerly looking for new opportunities in writing, editing and public speaking