After the tariff hike on foreign automobiles declared by the Trump administration, Tata Motors shares fell 3% on April 3, 2025. , Photo Credit: Reuters
On Thursday, Tata Motors shares fell by about 3% on Thursday (April 3, 2025) with the impact of tariff hike on foreign -manufactured foreign -made automobiles announced by Trump administration on 26 March.
These American tariff hikes have become effective since midnight of April 3.
During the day, Mumbai -based Tata Motors’ scrips fell 2.58% to BSE .50 654.50 per piece.
According to a White House release, “… steel/aluminum articles and auto/auto parts already subject to Section 232 tariff” and therefore exempted from the liberation day announcements made by US President Donald Trump.
However, auto parts tariffs will not be implemented later after May 3, 2025.
Tariff imported passenger vehicles- sedan, SUV, crossover, minivan, cargo van- and light trucks- will apply to important auto parts, engines, broadcasting, powertrain components and major electrical parts.
Tata Motors Limited is the original company of the British passenger vehicle manufacturer Jaguar Land Rover (JLR). The United States is a major market for JLR as its sale came from American markets in 2024.
While India is not a major exporter of cars to the US, Tata Motors’ luxury car assistant, JLR, is deeply entangled in the US market. Out of over 4,00,000 units of JLR sold in FY24, about 23% were in the US, all were exported from UK plants.
“The US has imposed 25% tariffs on imported cars, light trucks and selected auto parts from outside North America. In addition, around 150 auto parts will face tariffs at a similar rate,” Arun Aggarwal, VP, Automobiles in Kotak Securities, Automobiles said.
Meanwhile, Tariff Hike has reduced the shares of Bharat Forge from 4.6% to ₹ 1,099.40, Balakrishna Industry has reduced by 4.3% to ₹ 2,453.90, gold BLW Procession Forging for 3.60% to ₹ 449.60, Samarudhana Metions by 3.3% to 3%.
On the other hand, Bajaj Auto shares slipped from 2.87% to ₹ 7,840, falling from TVS motor cum 2.08% to ₹ 2,442.85, Ashok Leyland reduced Mahindra and Mahindra from 1.4% to ₹ 2,600.55, Mahindra and Mahindra.
The BSE Sensex benchmark fell from 300.98 points or 0.39% to 76,316.46.
The export of India’s auto components was $ 6.79 billion in FY14, while it imported $ 1.4 billion from the US on 15% import duty. India’s largest export item for the US is the engine component, powertrain and transmission.
In addition, Mr. Aggarwal said that the margin of suppliers may come under pressure as they may need to partially absorb cost pressures. We believe that there will be some effect, which suppliers will have to bear, which will have negative implications on the margin.
He said that the limit of influence for Indian players would also depend on the US-India bilateral agreement in the next few months.
Published – April 03, 2025 04:34 pm IST
