TTM Tata Motors Ltd

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

Dated: August 09, 2017

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JAGUAR LAND ROVER RESULTS FOR THE QUARTER ENDED 30 JUNE 2017 9th AUGUST 2017

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DISCLAIMER Statements in this presentation describing the objectives, projections, estimates and expectations of Jaguar Land Rover Automotive plc and its direct and indirect subsidiaries (the “Company”, “Group” or “JLR”) may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand / supply and price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws and other statutes and incidental factors.—Q1 FY18 represents the 3 month period from 1 April 2017 to 30 June 2017—Q1 FY17 represents the 3 month period from 1 April 2016 to 30 June 2016 Consolidated results of Jaguar Land Rover Automotive plc and its subsidiaries contained in the presentation are unaudited and presented under IFRS as approved in the EU. Retail volume data includes and wholesale volume excludes sales from the Company’s unconsolidated Chinese joint venture (“CJLR”). EBITDA is defined to include the revaluation of current assets and liabilities and realised FX and commodity hedges but excludes the revaluation of foreign currency debt, unrealised FX and commodity hedges, as well as exceptional items EBIT is defined to include the revaluation of current assets and liabilities and realised FX and commodity hedges as well as profits from CJLR but excludes the revaluation of foreign currency debt, unrealised FX and commodity hedges, and exceptional items Certain analysis undertaken and represented in this document may constitute an estimate from the Company and may differ from the actual underlying results

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AGENDA Financial performance for the quarter 4 Other developments 12 JLR Strategy 14 Looking ahead 15 Closing Q&A Company participants Kenneth Gregor, CFO, Jaguar Land Rover C. Ramakrishnan, Group CFO, Tata Motors Bennett Birgbauer, Treasurer, Jaguar Land Rover

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KEY FINANCIAL METRICS STRONG REVENUE, PBT UP WITH ONE-OFF PENSION CREDIT* £ millions Revenue Underlying EBITDA PBT 900 20% 800 18% 672 16% 5,355 5,599 700 14% 595 600 12.5% 12% 500 442 10% 399 400 7.9% 8% 300 6% 200 4% 100 2% —0% Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 * Q1 FY18 PBT includes a £437m credit relating to changes made to the Company’s pension plans, not included in underlying EBITDA. - 4 -

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KEY FINANCIAL METRICS STRONG REVENUE, PBT UP WITH ONE-OFF PENSION CREDIT* Quarter ended 30 June (£ million, unless stated) 2017 2016 Change Retail volumes (‘000 units) (inc CJLR) 137.5 132.8 4.7 Wholesale volumes (‘000 units) (exc CJLR) 117.9 120.8 (2.9) Revenue 5,599 5,355 244 Underlying EBITDA 442 672 (230) Underlying EBITDA Margin 7.9% 12.5% (4.6) pts Profit before tax and one-off items 157 348 (191) One-off items* 438 51 387 Profit before tax 595 399 196 Underlying EBIT margin 1.2% 6.1% (4.9) pts Unadjusted EBIT margin 9.0% 6.1% 2.9 pts * The one-off Items relate to a £437m credit relating to changes made to the Company’s pension plans in Q1 FY18 and the non-recurrence of £50m of Tianjin recoveries in Q1 FY17 - 5 -

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Q1 FY18 RETAILS 137,463 UP 3.5% STRONG CHINA AND US SALES, UK DOWN AFTER TAX CHANGE Units in ‘000 North UK Europe China Overseas America YoY +15.6% (14.3)% 0.0% +30.3% (13.9)% 33.5 33.5 28.4 23.1 18.9 20.7% 16.8% 24.4% 13.8% 24.4% Volumes include sales from Chery Jaguar Land Rover – Q1 FY18 20,309 units, Q1 FY17 Actuals 14,039—6 -

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Q1 FY18 RETAILS 137,463 UP 3.5% NEW DISCOVERY LAUNCHED IN CHINA AND US IN MAY Units in ‘000 28.0 24.8 19.9 17.6 14.1 8.9 9.6 9.3 2.4 2.7 0.1 - XE XF XJ F-PACE F-TYPE Discovery Discovery RR Evoque RR Velar RR Sport Range Rover Defender Sport YoY (0.4) 1.7 (0.1) 8.2 0.0 (1.1) (3.1) (1.0) 0.1 (0.7) 1.7 (0.7) Volumes include sales from Chery Jaguar Land Rover – Q1 FY18 20,309 units, Q1 FY17 14,039 - 7 -

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YEAR ON YEAR PROFIT WALK £ millions Pension credit: £437m FY17 Tianjin recovery: £50 £387 £595 Continuation of FY17 trend —particularly US £399 £(28) £(93) £(96) £(62) £88 PBT Q1 FY17 Volume, mix and Net pricing Material and D&A Exchange & One-off items PBT Q1 FY18 market Operating costs commodities Underlying 6.1% (2.4)% (1.6)% (1.1)% 0.2% n/a 1.2% EBIT - 8—For analytical purposes only

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QUARTER ON QUARTER PROFIT WALK Q1 SALES CALENDARISATION, ONE-OFF PENSION CREDIT £ millions Wholesale volumes down 41k units vs Q4 FY17 £(531) Pension credit: £437m £676 FY17 Tianjin recovery: £15 £422 £595 £104 £(1) £(49) £(26) PBT Q4 FY17 Volume, mix and Net pricing Material and D&A Exchange & One-off items PBT Q1 FY18 market Operating costs commodities Underlying 9.0% (7.3)% 1.9% (0.0)% (2.4)% n/a 1.2% EBIT - 9—For analytical purposes only

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CASH FLOW INVESTMENT AND WORKING CAPITAL CALENDARISATION Quarter ended 30 June (£ millions) 2017 2016 Change 38 30 PBT 595 399 196 Depreciation and amortisation 450 388 62 Tax paid (104) (59) (45) Other (496) (30) (467) Cash profit after tax 445 698 (254) Total product and other investment (995) (692) (303) Working capital changes (733) (640) (93) Finance expenses and fees (25) (27) 2 Free cash flow* (1,308) (661) (648) Changes in debt (11) (91) 81 Dividends paid (60) (150) 90 Net change in cash & financial deposits (1,379) (902) (477) * Free cash flow defined as net cash generated from operating activities less net cash used in investing activities (excluding movements in short-term deposits) and after finance expenses and fees and payments of lease obligations. Free cash flow also includes foreign exchange gains/losses on short-term deposits and cash and cash equivalents

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STRONG LIQUIDITY £4.1B CASH & £1.9B UNDRAWN RCF £ millions Total cash Debt maturity profile 4,108 3,749 3,501 139 £1.9b undrawn 3,362 RCF extended to 2022 with no financial covenant 500 784 539 571 384 384 300 400 - Q1 FY17 Q1 FY18 CY18 CY19 CY20 CY21 CY22 CY23 CY24 Total Debt Bonds Other debt: Discounted receivables, finance leases and deferred fees - 11 -

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EXCITING NEW PRODUCTS TO DRIVE FUTURE GROWTH Discovery (US & China May 2017) Range Rover Velar (July 2017) XF Sportbrake (This summer) E-PACE (This winter) I-PACE (2018) Watch this space! First premium SUV BEV - 12 -

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JULY RETAILS 46,074 UP 3.6% NEW DISCOVERY RAMPING UP, RANGE ROVER VELAR STARTED Units in ‘000 9.2 7.5 6.0 5.7 4.4 4.3 3.0 2.7 1.7 0.8 0.8 0.0 XE XF XJ F-PACE F-TYPE Discovery Discovery RR Evoque RR Velar RR Sport Range Rover Discontinued Sport YoY (0.8) 0.5 (0.1) 0.2 (0.1) 0.8 0.5 (0.8) 1.7 (0.7) 0.4 (0.2) Volumes include sales from Chery Jaguar Land Rover – Jul FY18 6,673 units, July FY17 3,669 units - 13 -

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JLR STRATEGIC PRIORITIES — ACES AUTONOMOUS CONNECTED ELECTRIC SHARED JLR vehicles currently Investment in technology I-PACE Battery Electric InMotion Ventures include level 2 features & infrastructure to Vehicle on sale 2018 invests in the future of support higher levels of transport and mobility Investing in driver Plug-in hybrids starting in connectivity assistance technology to 2018 Lyft investment—$25m support increasing Cloudcar—$15m equity with opportunities to degrees of automation investment collaborate - 14 -

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LOOKING AHEAD CONTINUING TO INVEST TO DRIVE PROFITABLE GROWTH JLR’s strategy is to achieve sustainable profitable growth by investing proportionally more in new products, technology and manufacturing capacity. Consistent with this, FY18 investment spending is expected to be in the region of £4 – 4.35b, including investment in the new Slovakia plant Despite increased geopolitical uncertainty (e.g. Brexit in the UK), economic growth in most major economies is continuing, although competitive conditions and incentive levels in the automotive sector have increased in key markets such as North America As previously indicated, JLR expects margin pressures seen in FY17 including higher incentive levels and launch and growth costs to continue in FY18. We also expect seasonality in volume and profit by Quarter to continue The launch of the versatile new Discovery (US and China in May), the stunning Range Rover Velar, the Jaguar E-PACE, XF Sportbrake and other exciting new models in FY18 are expected to strengthen our portfolio and attract new customers, driving sustainable profitable growth over the course of the financial year and beyond JLR’s planning target remains to achieve an 8-10% EBIT margin in the medium term - 15 -

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Thank You Kenneth Gregor Jaguar Land Rover CFO, Jaguar Land Rover Abbey Road, Whitley, Coventry CV3 4LF C. Ramakrishnan Jaguarlandrover.com Group CFO, Tata Motors Bennett Birgbauer Treasurer, Jaguar Land Rover Jaguar Land Rover Investor Relations investor@jaguarlandrover.com Tata Motors Investor Relations Ir_tml@tatamotors.com - 16 -

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ADDITIONAL SLIDES

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CHINA JOINT VENTURE INCREASED SALES AND PROFITS Units in 000’s £ millions JLR share of profit Retail volumes 77 20.3 14.0 45 On sale from CJLR 2018 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 - 18—Note: Includes local market incentive of £31m in Q1 FY18 and £6m in Q1 FY17

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INCOME STATEMENT STRONG REVENUE, PBT UP WITH ONE-OFF PENSION CREDIT* Quarter ended 30 June (£ millions) 2017 2016 Change 38 30 Revenues 5,599 5,355 244 Material and other cost of sales (3,565) (3,241) (324) Employee costs (656) (605) (51) Other (expense) /income(1) (1,291) (1,159) (132) Product development costs capitalised 355 322 33 Underlying EBITDA 442 672 (230) Depreciation and amortisation (450) (388) (62) Share of profit from Joint Venture 77 45 32 Underlying EBIT 69 329 (260) Undesignated debt/unrealised hedges MTM(2) 100 31 69 Net finance (expense) / income and other (12) (12) - Profit before tax and one-off items 157 348 (191) One-off items 438 51 387 Profit before tax 595 399 196 Income tax (123) (95) (28) Profit after tax 472 304 168 * The one-off Items relate to a £437m credit relating to changes made to the Company’s pension plans in Q1 FY18 and the non-recurrence of Tianjin recoveries (£51m in Q1 FY17 ) 1) Includes mark to market of current assets and liabilities and realised gains/losses on FX and commodity hedges not hedge accounted 2) Includes mark to market of unrealised FX of hedges (including time value of options) and realised currency derivatives entered into to hedge certain foreign currency debt The mark to market of realised gains/losses on matured, hedge accounted FX trades is now reported against ‘Revenue’ or ‘Material and other cost of sales’ in line with the respective underlying hedged item. For consistency, comparative periods have been restated for this change in presentation—19 -

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Q1 FY18 WHOLESALES OF 117,916 DOWN 2.4% REFLECTS PRODUCTION SCHEDULES Units in ‘000 North UK Europe China Overseas America YoY (0.8)% +13.8% (11.9)% +7.6% (12.3)% 31.3 29.4 25.8 17.7 13.7 25.0% 15.0% 21.9% 26.5% 11.6% Volumes exclude sales from Chery Jaguar Land Rover – Q1 FY18 20,560 units, Q1 DFY17 13,558 units—20 -

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Q1 FY18 WHOLESALES OF 117,916 DOWN 2.4% F-PACE, RANGE ROVER & VELAR OFFSET BY LOWER XE, XF Units in ‘000 21.2 19.0 17.8 18.1 13.5 11.7 6.4 3.5 3.0 2.0 1.8 0.0 XE XF XJ F-PACE F-TYPE Discovery Discovery RR Evoque RR Velar RR Sport Range Rover Discontinued Sport YoY (2.4) (3.3) 0.5 4.4 (1.1) (0.6) (0.7) (0.8) 1.8 (1.1) 0.8 (0.3) Volumes exclude sales from Chery Jaguar Land Rover – Q1 FY18 20,560 units, Q1 FY17 13,558 units—21 -

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JULY RETAILS 46,074 UP 3.6% CHINA UP WITH OTHER MARKETS SLIGHTLY WEAKER Units in ‘000 North UK Europe China Overseas America YoY (2.7)% (1.0)% (5.7)% +34.4% (6.1)% 11.6 10.2 10.1 7.6 6.6 22.1% 16.4% 14.3% 21.9% 25.3% Volumes include sales from Chery Jaguar Land Rover – Jul FY18 6,673 units, July FY17 3,669 units—22 -

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PRODUCT AND OTHER INVESTMENT CAPITAL EXPENDITURE TO GROW THE BUSINESS Quarter ended 30 June (£ millions) 2017 2016 Change 38 30 R&D expense Capitalised 355 322 33 Expensed 94 85 9 Total R&D expense 449 407 42 Investment in tangible and other intangible assets 546 285 261 Total product and other investment 995 692 303 Capital investment as % of revenue 17.8% 12.9% 4.9 ppt Of which capitalised 901 607 294

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FOREIGN EXCHANGE IMPACT ON PROFITABILITY Quarter ended 30 June (£ millions) 2017 2016 Change 38 30 Operational exchange n/a n/a 259 Realised FX hedges and other (454) (115) (339) Revaluation of current assets and liabilities including warranty (365) (3) (94) (86) (271) 83 Total FX impacting EBITDA & EBIT n/a n/a 3 Unrealised FX Hedges 89 21 68 Revaluation of Undesignated Debt 19 (23) 42 Total FX impact on PBT n/a n/a 113 Realised commodities (incl. in EBITDA & EBIT) 1 (15) 16 Unrealised commodities (excl. from EBITDA & EBIT) (8) 33 (41) Total FX & Commodities impact on PBT n/a n/a 88 End of Period Exchange Rates Q-o-Qx Q-o-Qx GBP:USD 1.301 4.4%x 1.346 6.2%x GBP:EUR 1.140 2.2%x 1.211 4.2%x GBP:CNY 8.817 2.8%x 8.965 3.4%x

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Jaguar Land Rover Automotive plc Interim Report For the three month period ended 30 June 2017 Company registered number: 06477691

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Group, Company, Jaguar Land Rover and JLR refers to Jaguar Land Rover Automotive plc and its subsidiaries.

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Management’s discussion and analysis of financial condition and results of operations

Jaguar Land Rover achieved retail sales of 137,463 (including China JV sales) in Q1 FY18 led by higher growth in China and North America with continued strong demand for the Jaguar F-PACE and Range Rover as well as the introduction of the long wheel base Jaguar XFL in China. PBT was £595 million including a £437 million one-off credit relating to changes made to the Company’s pension plans from a final salary to a career average basis.

Key metrics/highlights for Q1 FY18 results, compared to Q1 FY17, are as follows:

Market environment

The economic environment remained generally positive, notwithstanding significant geopolitical uncertainty. Slowing growth and higher inflation in the UK is beginning to emerge and Brexit has continued to be a source of uncertainty exacerbated by the lack of a decisive majority following the general election in June, however, the Pound has recovered slightly against the US Dollar recently. GDP growth in the US continues to be solid and the Fed increased interest rate by 25bpts to 1.25% on 14 June, although uncertainty over future rate increases has seen the US Dollar weaken. Economic growth in China in Q1 FY18 beat market expectations supported by strong growth in the property market, however concerns over property price inflation and debt levels remain. Steady growth in Europe continues to be supported by low inflation, solid consumer spending and increased confidence with the Euro strengthening amid growing expectation of QE tapering by the ECB. The economic environment in emerging markets remains challenging, notwithstanding some encouragement as Russia comes out of a recession.

Total automotive industry car volumes (units)

The total industry car volume data above has been compiled using relevant data available at the time of publishing this Interim Report, compiled from national automotive associations such as the Society of Motor Manufacturers and Traders in the UK and the ACEA in Europe, according to their segment definitions, which may differ from those used by JLR.

Jaguar Land Rover sales volumes year-on-year performance

Q1 FY18 total retail sales were 137,463 units (including the China JV), up 3.5%, driven by continuing strong demand for the Jaguar F-PACE and Range Rover as well as the introduction of the long wheel base Jaguar XFL in China. By region, Q1 FY18 retail sales were up in China (30.3%) and North America (15.6%), flat in Europe, down 13.9% in Overseas markets and down 14.3% in the UK which includes the impact of consumers having pulled ahead purchases in March ahead of an increase in vehicle excise duty enacted on 1 April 2017. By brand, Land Rover retails in Q1 FY18 were 96,197 units, down 4.7% with launch of the Discovery not yet fully ramped up (only launched in the US and China in May) but strong sales of Range Rover (up 13.8%). Jaguar retails were 41,266 units, up 29.7%, primarily driven by continued strong demand for F-PACE and the introduction of the XFL in China.

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Wholesales totalled 117,916 units (excluding China JV) in Q1 FY18, down 2.4%, in particular following strong seasonal sales in Q4 FY17. By brand, Land Rover wholesales were 85,279 units, down slightly (1.1%). Jaguar wholesales in Q1 FY18 were 32,637 units, down 5.6%, reflecting lower sales of XE, F-TYPE and XF (impacted by sales of the long wheel base Jaguar XFL now on sale from the China JV), offset partially by higher F-PACE and XJ volumes. By region, JLR wholesales were up in the UK (13.8%) and China (7.6%), broadly flat in North America and down in Europe (11.9%) and in other Overseas markets (12.3%).

Jaguar Land Rover’s Q1 FY18 retail sales (including the China JV) by key region and model compared to Q1 FY17 is detailed in the following table:

Revenue and profits

Revenue was £5.6 billion in Q1 FY18, up £244 million year on year, primarily reflecting favourable foreign exchange (weaker Pound), partially offset by lower wholesales.

PBT was £595 million in Q1 FY18, up £196 million year on year, reflecting:

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Underlying EBITDA (excluding the one-off pension credit) was £442 million (7.9% margin) in Q1 FY18, compared to £672 million (12.5% margin) in Q1 FY17 and underlying EBIT was £69 million (1.2% margin) in Q1 FY18, compared to £329 million (6.1% margin) in Q1 FY17. The unadjusted EBIT margin was 9.0%.

PAT in Q1 FY18 was £472 million, compared to £304 million in the same period last year.

Underlying EBITDA and EBIT reconciliation

Cash flow, liquidity and capital resources

Free cash flow in Q1 FY18 was negative £1.3 billion after £995 million of total investment spending and £733 million of unfavourable working capital movements. In the quarter, £901 million of investment spending was capitalised and £94 million was expensed through the income statement.

Cash and financial deposits at 30 June 2017 stood at £4.1 billion (comprising £1.6 billion of cash and cash equivalents and £2.5 billion of financial deposits) after the negative free cash flow of £1.3 billion, an £11m decrease in the utilisation of a short-term debt facility and a £60 million dividend (out of a total £150 million declared) paid to our parent TML Holdings Pte. Limited. The cash and financial deposits include an amount of £513 million held in subsidiaries of Jaguar Land Rover outside of the United Kingdom. The cash in some of these jurisdictions is subject to impediments to remitting cash to the UK other than through annual dividends. As at 30 June 2017, the Company also had an undrawn revolving credit facility totalling £1.9 billion, maturing in July 2020, and £69 million of an unutilized short-term uncommitted receivable factoring facility. The Company has since amended the undrawn revolving credit facility to mature in 2022 (see “Post Balance Sheet Items”)

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Risks and mitigating factors

There are a number of potential risks which could have a material impact on the Group’s performance and could cause actual results to differ materially from expected and/or historical results, including those discussed on pages 50-55 of the Annual Report 2016-17 of the Group (available at www.jaguarlandrover.com) along with mitigating factors. The principal risks discussed in the Group’s Annual Report 2016-17 are competitive business efficiency, global economic and geopolitical environment, environmental regulations and compliance, brand positioning, rapid technology change, information and cyber security, exchange rate fluctuations, unethical and prohibited business practice, product liability and recalls, patent and intellectual property (IP) protection.

Acquisitions and disposals

There were no material acquisitions or disposals in Q1 FY18.

Off-balance sheet financial arrangements

In Q1 FY18 the Company had no off-balance sheet financial arrangements other than to the extent disclosed in the condensed consolidated financial statements in this Interim Report, starting on page 6.

Related party transactions

Related party transactions for Q1 FY18 are disclosed in note 22 to the condensed consolidated financial statements disclosed on page 20 of this Interim Report. There have been no material changes in the related party transactions described in the latest annual report.

Post balance sheet items

Effective 28 July 2017, the Company amended and extended its existing £1,870 million unsecured revolving credit facility (originally maturing in July 2020) by 2 years to mature in July 2022 and increased the facility size to £1,885 million.

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Employees

At the end of Q1 FY18, Jaguar Land Rover employed 40,857 people worldwide including agency personnel. This compared to 39,386 at the end of Q1 FY17.

Board of directors

The following table provides information with respect to the current members of the Board of Directors of Jaguar Land Rover Automotive plc:

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These condensed consolidated interim financial statements were approved by the JLR plc Board and authorised for issue on 9 August 2017.

Company registered number: 06477691

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Notes (forming part of the condensed consolidated interim financial statements)

Basis of preparation

The information for the three month period ended 30 June 2017 is unaudited and does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The condensed consolidated interim financial statements of Jaguar Land Rover Automotive plc have been prepared in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’ under International Financial Reporting Standards (‘IFRS’) as adopted by the European Union (‘EU’).

The condensed consolidated interim financial statements have been prepared on a historical cost basis except for certain financial instruments held at fair value as highlighted in note 15.

The condensed consolidated interim financial statements should be read in conjunction with the annual consolidated financial statements for the year ended 31 March 2017, which were prepared in accordance with IFRS as adopted by the EU.

The condensed consolidated interim financial statements have been prepared on the going concern basis as set out within the directors’ report of the Group’s annual report for the year ended 31 March 2017.

The accounting policies applied are consistent with those of the annual consolidated financial statements for the year ended 31 March 2017, as described in those financial statements.

Change in presentation of foreign exchange gains and losses

During the quarter ended 31 March 2017, the Group reviewed the presentation of foreign exchange in the consolidated income statement following the continued increase in hedging activity, volatility in foreign exchange rates, and in anticipation of transition to IFRS 9.

As a result, it was considered more appropriate to present realised foreign exchange relating to derivatives hedging revenue exposures as an adjustment to “Revenue” and realised foreign exchange relating to derivatives hedging cost exposures as an adjustment to ‘Material and other cost of sales’. The prior period comparatives have been represented on this basis. Realised foreign exchange losses of £106 million and £14 million have been adjusted to ‘Revenue’ and ‘Material and other cost of sales’ respectively for the period ended 30 June 2016.

There is no impact upon the reported profit after taxation or reported equity for the period ended 30 June 2016.

The exceptional item within ‘Material and other cost of sales’ of £1 million for the quarter ended 30 June 2017 relates to the recovery of import duties and taxes following the explosion at the port of Tianjin (China) in August 2015 which led to a reversal of the initial provision recorded in the quarter ended 30 September 2015.

The exceptional item within “Material and other cost of sales” of £51 million for the quarter ended 30 June 2016 related to an interim payment of £50 milliion in relation to the vehicles involved in the Tianjin incident and £1 million due to achieving sales at a higher net realisable value than that estimated at 31 March 2016.

Due to the size of the provision recorded, the charge together with the associated tax impact was disclosed as an exceptional item in the year ended 31 March 2016.

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The capitalisation rate used to calculate borrowing costs eligible for capitalisation during the three month period was 4.0% (three months ended 30 June 2016: 4.4%).

Changes in the allowances for trade and other receivables are as follows:

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Recognised in the income statement

The income tax for the three month period ended 30 June 2017 and 30 June 2016 is charged at the estimated effective tax rate expected to apply for the applicable financial year ends.

Capital expenditure in the three month period was £526 million (three month period to 30 June 2016: £260 million) on property, plant and equipment and £371 million (three month period to 30 June 2016: £345 million) was capitalised as intangible assets (excluding research and development expenditure credits). There were no impairments, material disposals or changes in use of assets.

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Product warranty provision

The Group offers warranty cover in respect of manufacturing defects, which become apparent one to five years after purchase, dependent on the market in which the purchase occurred and the vehicle purchased. The estimated liability for product warranty is recognised when products are sold or when new warranty programmes are initiated. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future warranty claims, customer goodwill and recall complaints. The discount on the warranty provision is calculated using a risk-free discount rate as the risks specific to the liability, such as inflation, are included in the base calculation. The timing of outflows will vary as and when a warranty claim will arise, being typically up to five years.

Legal and product liability provision

A legal and product liability provision is maintained in respect of compliance with regulations and known litigations that impact the Group. The provision primarily relates to motor accident claims, consumer complaints, dealer terminations, employment cases, personal injury claims and compliance with regulations. The timing of outflows will vary as and when claims are received and settled, which is not known with certainty.

Residual risk provision

In certain markets, the Group is responsible for the residual risk arising on vehicles sold by dealers on leasing arrangements. The provision is based on the latest available market expectations of future residual value trends. The timing of the outflows will be at the end of the lease arrangements, being typically up to three years.

Environmental liability provision

This provision relates to various environmental remediation costs such as asbestos removal and land clean-up. The timing of when these costs will be incurred is not known with certainty.

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The condensed consolidated interim financial statements have been prepared on a historical cost basis except for certain financial instruments held at fair value. These financial instruments are classified as level 2 fair value measurements, as defined by IFRS 13, being those derived from inputs other than quoted prices which are observable. There have been no changes in the valuation techniques used or transfers between fair value levels from those set out in note 35 to the annual consolidated financial statements for the year ended 31 March 2017.

The following tables show the carrying amounts and fair value of each category of financial assets and liabilities.