For the first time in 3-years, Jaguar Land Rover has reported a loss after its sales have descended in China.
Jaguar, which is owned by Tata Motors and is the biggest car firm in the United Kingdom, has blamed this hitch on “multiple challenges”.
The car firm said that the setback also included the effect of a temporary issue because of the changes made in the Chinese import duties.
China plans to slash the import tariffs for cars and the parts of most vehicles from 25% to 15% from the 1st of July. The cut on import tariffs is a part of the nation’s efforts to reduce the ongoing tensions with the United States over trade.
As a result of the import tariffs for cars and vehicles parts getting slashed, many customers delayed purchases, JLR said.
JLR also said that the ongoing saga of the United Kingdom’s departure from the EU and the backlash against diesel run vehicles in the United Kingdom had also hit sales.
JLR isn’t the only auto company that is affected by the alterations in the Chinese trade policies. Few days back, three US car companies cautioned that their performances were getting affected by the alterations to tariffs.
GM and Ford lowered their profit projection for 2018, referring to the new United States tariffs that has hiked the prices of steel and aluminum.
Maserati and Jeep, owned by Fiat Chrysler, also lowered its 2018 profit forecast after the sales in China declined as customers delayed purchases in expectation of lower car tariffs.