All these factors resulted in a 7 per cent fall in JLR's quarterly revenues to 5.2 billion pounds.
Commenting on the domestic business and it's growth, Chandrasekaran said, "I am delighted with the progress made by the domestic business on their "Turnaround 2.0" strategy".
Britain's biggest carmaker has blamed Chinese manoeuvres on trade, uncertainty from Brexit and a backlash against diesel engines after slumping to a £264 million pre-tax loss in the second quarter.
JLR was hurt by China's import duty cut effective July 1, which led to "lower wholesales" ahead of the reduction, as well as market issues like diesel concerns in the United Kingdom and Europe.
Despite these challenges, the company remains committed to delivering the planned margins it outlined earlier this year, Chandrasekaran said. Towards this, we will step up all round execution.
Sales of Jaguar F-Pace SUV fell 26% in the quarter, while Discovery Sport declined 14%. According to the company, the profitability was hit due to lower operating leverage, higher discounts in the US, UK and China, foreign currency fluctuations, and higher depreciation and amortisation costs. The Chinese government has announced a reduction in import taxes from July 1, which had made the consumer of the world's largest automobile market defer purchase during the quarter ended in June.
Investment rationale by Prabhudas Lilladher: Operational challenges at JLR: Despite nearly 6 per cent YoY growth in JLR retails over Q1FY19, JLR Wholesales for the quarter were lower nearly 8 per cent YoY mainly on account of lower volumes in China ahead of the import duty reduction from 25 per cent to 10 per cent (which also lead to increase in incentives by nearly GBP110mn for the China market) and planned dealer stock reduction in other markets.
Dr Speth said JLR expected sales and financial results to improve over the remainder of the financial year, driven by continued ramp up of new models including the electric Jaguar I-Pace.
Speth said JLR would focus on reducing costs while still increasing sales. "We will also calibrate our capital spends to minimise cash outflow", he said.