Tata Motors-owned Jaguar Land Rover (JLR) is expected to benefit out of China’s retaliatory tariffs on US imported cars as local production, competitive pricing and new launches work in its favour. Analysts at Nomura observed in a report that the Chinese government’s plan to impose 25% tariffs on various categories, including automobiles, can be beneficial for JLR. They indicate that China imported about 10 lakh automobiles from across the world in 2017, of which around 24,000 cars were exports from factories in the US. These were mainly high-end SUVs by automakers such as BMW, Daimler, Ford, Fiat Chrysler and Tesla. Indicating that these OEMs will take at least two to three years to address this issue by expanding local China production or start exporting from other countries, they pointed out on JLR benefiting out of the volume impact caused due to the sharp increase in prices of German luxury vehicles. “We are currently factoring in 12% volume growth in FY19 for JLR,” they said. Moreover, JLR is also seen to benefit from the ramp-up of Jaguar XE (long wheel base) launched in the last quarter of FY18 and the launch of the E-Pace by the end of 2018. “We are currently factoring in around 15% growth in China sales for JLR (including China JV sales),”they said. China is the single biggest market for JLR today with close to 30% of its global sales coming from it. The company could not be contacted for an input.