Jaguar Land Rover (JLR) on Monday reported a 4.9% year-on-year fall in its global retail sales at 36,629 units for August. The decline in sales is because of tough market conditions faced by JLR due to taxes on diesel vehicles in Europe and the UK, proposed duty cut and de-stocking with dealers in China and higher incentives in the US. While sales in Europe were down 3.1% in August, China sales witnessed a fall of 38.1% due to tariff changes and trade tensions. However, UK saless grew 64.9%, boosted by a catch up in WLTP (worldwide harmonized light vehicle test procedure) certification of vehicles. Commenting on the challenges faced by JLR. Felix Brautigam, Jaguar Land Rover chief commercial officer, said: \u201cWe are continuing to see challenges in our key markets. The china market is seeing uncertainty following tariff changes and trade tensions. Concerns over diesel and Brexit continue to weigh on the industry in the UK and Europe although August sales were encouraging.\u201d Analysts with Nomura expect the volume growth to recover gradually in China over the next year given reduction in import tariffs to 15% from 25%. They further observe that since China is the most profitable market for JLR, any disappointment from China due to regulatory concerns or demand slowdown could lead to downside risks to earnings estimates. Moreover, while Jaguar retail sales were up 7.7% to 11,802 units, driven by the introduction of E-PACE and I-PACE, Land Rover\u2019s sales were down 9.9% to 24,827 units. The management expects strong second half of the year for Jaguar. JLR generates 78% of total Tata Motors\u2019 consolidated revenues. Shares of Tata Motors fell 2% on Monday.