• Tata Motors' profit drops 63%
• JLR impacted by U.S. export halt in first quarter
• Maintains JLR guidance despite tariff impact

Aug 8 (Reuters) - Indian automaker Tata Motors (TAMO.NS) , opens new tab posted a 63% slump in quarterly profit on Friday, its fourth straight quarter of decline, as U.S. tariffs hurt businesses that were already reeling from weak sales at home and in its luxury car segments.

Tata Motors, India's top seller of electric cars and commercial vehicles, has been battling weak urban demand at home. Overseas, its profit-driving luxury unit Jaguar Land Rover logged a sales drop of 11% due to a temporary halt in U.S. exports and the phase-out of older Jaguar models.

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Quarterly volumes and revenue took a hit from a 27.5% U.S. tariff on UK- and EU-made cars, along with the planned phase-out of legacy Jaguar models ahead of a new launch, Tata Motors said on Friday, adding that the tariffs dealt a direct blow to profitability and cash flow.

U.S. duties wiped 254 million pounds ($341.33 million) off its quarterly earnings, Tata Motors said.

However, it kept its JLR forecast unchanged, saying a U.S.-UK trade deal signed in May would sharply cut the tariff hit. The pact lets the UK export 100,000 cars a year to the U.S. at a 10% duty, instead of the 25% faced by other countries.

The company reported a profit of 39.24 billion rupees ($447.8 million) in the April-June quarter, down from a restated 105.14 billion rupees a year earlier that includes a 49.75-billion-rupee one-time gain.

Excluding the gain, profit was down 30.5% year-on-year.

Tata Motors expects demand to remain challenging but aims to boost performance as clarity on tariffs emerges and festive demand picks up, Chief Financial Officer P.B. Balaji said.

With a planned demerger in October 2025 to split its commercial and passenger vehicle businesses, the company is focused on delivering a strong second-half performance, he added.

Quarterly revenue fell 2.5% from a year earlier as sales slowed, mirroring trends at domestic rivals Maruti Suzuki India (MRTI.NS) , opens new tab and Hyundai Motor India (HYUN.NS) , opens new tab.

($1 = 87.6200 Indian rupees)

($1 = 0.7442 pounds)

https://www.reuters.com/world/india/indian-automaker-tata-motors-quarterly-profit-plunges-tariffs-slow-sales-bite-2025-08-08/