With China slowdown, can JLR hold on to margins?

Shares in automaker Tata Motors fell for a fourth straight session on margin worries at its luxury car unit Jaguar Land Rover (JLR), dealers said, following reports of major discounts offered by rival luxury car brands in China.

[caption id=“attachment_251498” align=“alignleft” width=“380” caption=“China contributed 17.2 percent of JLR’s total revenues in the quarter ending December 31. Reuters”] [/caption]

China contributed 17.2 percent of JLR’s total revenues in the quarter ending December 31. JLR contributed 95 percent of Tata Motors consolidated profits during the quarter.

Shares in Tata Motors have fallen more than 9 percent in the past four sessions.

Although analysts’ view differ, the big question is, if the overall pricing environment is weakening, how long can JLR hold on to its margins?

Reuters