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EEB JLR PPT Final

Tata Motors derives 90% of its revenues from Jaguar Land Rover (JLR), which will be significantly impacted by Brexit. A poor Brexit deal could cost JLR 1.2 billion euros due to new taxes and tariffs. These include a 10% levy on JLR vehicles exported from the UK to Europe and a 4% levy on imported components. The cost increases threaten JLR's competitiveness and profitability in European markets. To mitigate the effects, Tata is opening a new JLR plant in Slovakia to serve European customers without trade barriers.

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TanmayMurugkar
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151 views10 pages

EEB JLR PPT Final

Tata Motors derives 90% of its revenues from Jaguar Land Rover (JLR), which will be significantly impacted by Brexit. A poor Brexit deal could cost JLR 1.2 billion euros due to new taxes and tariffs. These include a 10% levy on JLR vehicles exported from the UK to Europe and a 4% levy on imported components. The cost increases threaten JLR's competitiveness and profitability in European markets. To mitigate the effects, Tata is opening a new JLR plant in Slovakia to serve European customers without trade barriers.

Uploaded by

TanmayMurugkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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BREXIT & ITS

IMPACT ON
TATA MOTORS

Submitted By:
•Anjali Agarwal - 201912055
•Tanmay Murugkar - 201912119
•Parnika Tandon - 201912078
•Shashank Shekhar - 201912088
•Divyank Khandelwal - 201912061
•Minal Patel - 201912073
• Withdrawal of United Kingdom from EU.
• 52% voted to leave EU and 48% voted no.
• Economist expect Brexit will have immediate
and long-term effects.
INTRODUCT • Brexit might reduce UK’s real per capita income
ION in the medium and long term.
• Brexit has reduced investment and employment
growth.
• Brexit might effect lower productivity growth in
future.
ECONOMIC REASON
• Stagflation in EU
• EU failed to issue of Unemployment
• UK paying more to EU budget than it was
REASONS receiving.
FOR SOVEREIGNTY ISSUES
• Growing Nationalism
BREXIT • Illegal migration
POLITICAL REASONS
• Majority UK citizen voted for Brexit
• TATA Motors derives 90% of its revenues from
JLR.
BREXIT • Problems depended on deal that will be
negotiated between EU &UK
AND • A poor deal could wipe 1.2 billion euros.
TATA • In May 2016, Europe accounted for more than
25% of JLR’s sales by volume.
MOTORS • 10% levy on vehicles being exported to Europe.
• 4% levy on import of components for the
production of vehicles.
BREXIT
EFFECT
ON
TATA
MOTORS
• High cost of production in UK.
BREXIT • Labor problems - 40,000 workers are
AND employed by Jaguar Land Rover in the
UK.
TATA • Cutting employees at Wolverhampton
MOTORS and Solihull factory.
• Shift away from diesel in Europe.
• Stricter Co2 emission and rise of electric
vehicle.
• 300,000 units per year at an assembly plant in
Slovakia.
• The vehicles produced in this plant will not be
STRATEGIC subject to tax levies.
INITIATIVE • Introducing electric vehicles I-pace & E- pace
SUV’s.
S • Easy availability of components with zero tax
levied.
• Slovakia lobbied for CO2 derogation with new
JLR plant in country.
• JLR should focus on electrification and zero
emission of its cars.
• Expand X type midsize jaguar sedan.
WAY • More technical partnerships to help Tata
FORWARD Motors transition to electric and autonomous
vehicles.
THANK YOU
This hit is expected to come from a 10% levy on vehicles
being exported to Europe (produced in the U.K., which
would no longer be part of the EU) and 4% levy on import
of components for the production of vehicles. Imposition
of taxes to sell these vehicles in other European countries
will make these vehicles less competitive in terms of
pricing. If the company does not pass on the levies to
consumers, it will impact profitability by bringing down
the average revenue per vehicle.

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