Tata Motors shares price: The stock has cracked after Trump proposed a 25 percent tariff on imported cars as part of his broader trade policy.
Tata Motors Share Price: Shares of Tata Motors, the parent company of Jaguar Land Rover (JLR), are under huge selling pressure after US President Donald Trump announced a 25 per cent tariff on imported cars. The counter fell around 6.58 per cent in the opening trade
Tata Motors shares opened gap down at Rs 673.95 on the BSE with a loss of 4.8 per cent from the previous close of Rs 707.95. The stock fell further amid selling pressure and touched a low of Rs 661.35. Last seen, the counter was trading at Rs 674.10.
The stock has cracked after Trump proposed a 25 percent tariff on imported cars as part of his broader trade policy.
Why are Tata Motors Shares Falling?
For Jaguar Land Rover (JLR), Tata Motors’ luxury car subsidiary, the US is a key market. Higher tariffs could make JLR vehicles more expensive in the United States.
“Trump’s latest decision to impose a 25 per cent duty on all car imports to the US will impact Tata Motors which exports a significant chunk of JLR cars to the US,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Other Auto Stocks Under Pressure Too
Not just Tata Motors, shares of other auto components and equipment manufacturers are under pressure too. The stock of Samvardhana Motherson tumbled as much as 8 per cent today.
The stock opened gap down at Rs 130.40 – a loss of 3.41 per cent from the previous close of 135 on the BSE. The scrip fell further to touch the low of Rs 124.75. This is a fall of 7.59 per cent from the previous close.
Trump on Wednesday announced imposition of 25 per cent tariffs on auto imports from April with another 25 per cent tariffs expected to be applied on imports of major automotive parts — engines and engine parts, transmissions and powertrain parts, and electrical components by May.
The company has 18 per cent exposure to the US and its key clients include Mercedes Benz, BMW.
