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US auto tariff: JLR maker Tata Motors' shares drop over 5 pc

Mumbai, March 27 || Shares of Tata Motors Limited, the parent company of luxury carmaker Jaguar Land Rover (JLR), fell sharply on Thursday, after US President Donald Trump announced a 25 per cent tariff on cars that are not manufactured in the United States.

The stock declined 5.47 per cent or Rs 38.75 to close at Rs 669.5 on the National Stock Exchange (NSE).

Trump’s announcement came as part of his plan to introduce reciprocal tariffs on various countries. The new car tariffs are set to take effect from April 2, which has raised concerns for automakers with significant US exposure.

The United States is a crucial market for JLR, accounting for nearly one-third of its total sales in 2024.

According to the company’s annual report, 22 per cent of JLR’s overall sales came from the US, making it a major revenue source for the brand.

JLR vehicles sold in the US are mainly produced in the UK and other international plants, all of which will now face a 25 per cent tariff.

The impact of these new tariffs on the company’s financials remains uncertain, leading to volatility in Tata Motors’ stock.

Despite the recent fall, the company's management has remained optimistic. Tata Motors had recently reiterated that JLR is on track to meet its fourth-quarter target of 10 per cent EBIT (earnings before interest and taxes) margins and aims to be net debt-free by the end of the financial year.

 

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