Jaguar Land Rover (JLR) has reported a loss for the first time in three years, after that sales slowed in China.
The uk’s biggest car company, which is owned by the Indian company Tata Motors, blamed the setback on “multiple challenges”.
This includes the impact of what he said was a “temporary problem” of a change in the Chinese import duties.
China plans to reduce import tariffs for cars and parts for most vehicles to 15% from 25% from 1 July. As a result, many consumers delay purchases, JLR, said.
The tariff change is part of the efforts of the country to try to reduce tensions with the united states on the trade.
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The company is not the only car company affected by the changes in trade policies. Just a few days ago three US car companies warned that their performance had been affected by changes in tariffs.
Ford and General Motors lowered profit forecasts to 2018, citing higher steel and aluminum prices caused by new tariffs of the united states.
Fiat Chrysler, which owns Jeep, and Maserati, also cut its 2018 earnings outlook after sales in China fell as buyers postponed purchases in anticipation of lower car tariffs.To increase sales?
Jaguar Land Rover said that the reduction in the Chinese trade tasks could help to boost future sales in China.
The group said that fears about the uk’s exit from the European Union and the backlash against diesel vehicles in the uk and Europe had also hit sales.
For the three months to June, Jaguar Land Rover made a £264m on a pre-tax loss, compared with a £595m profit last round. The Total sales fell 6.7% year-on-year to £5.2 billion.
Tata Motors chief financial officer PB Balaji said China’s performance was its biggest concern.
“We need to ensure that China returns to the growth rate that was before the announcement that the duty of the cuts,” he said.
In terms of Brexit, said the company was “preparing for any eventuality that may be there.”