Tata Motors on Tuesday said trade wars do not benefit anybody and it only has bad news for everyone, amid threats from the US to impose tariffs on import of several items, including automobiles.
The company's British arm Jaguar Land Rover (JLR) sells vehicles manufactured at its plants in the UK to the US. The Trump administration has threatened to impose 25 per cent tariff on import of automobiles.
"Trade wars do not benefit anybody. We only hope that there is logical solution to it as early as possible. Therefore, it will be fair to say that nobody wishes for a trade war and it only has bad news for everyone," Tata Motors Group CFO P B Balaji told reporters in a conference call.
He was responding to a query on whether the company was apprehensive that sales of JLR could be caught up in the 'trade wars' between the US and Europe and China.
The US is the world's largest car market.
Referring to the EU-US standoff over tariffs, Balaji said,"We are reassured by the recent conversations that have happened between these two set ups and therefore we are optimistic that there will be amicable resolution to the issue".
Commenting on possible impact on JLR sales in Europe, he said it is linked to Brexit and so far on the basis of ongoing negotiations the company is optimistic about smooth supplies.
"We also hope for an amicable solution" Balaji added.
On China, he said the impact of duty reduction on JLR sales was a temporary disruption and the company expected to reverse the situation going forward.