Risks:

1)We further believe lower than expected demand in the wake of huge capex may further impact its
financial performance and remains a key risk for the company

2)Weakening outlook for demand in key markets and negative sentiment toward
diesel would pose challenge for JLR’s volume growth, though it would still
outgrow industry due to a favorable product lifecycle. Also, high volatility in GBP
reduces visibility on margins, though JLR is working on a plan to create natural
hedge by setting up plants in Slovakia and sourcing from Magna Steyr. Both
these factors have potential to drive further downgrades to our estimates due
to volume cut, higher variable marketing spend and adverse FX rate.