Trumps Tariffs and Tata Motors: Tata Motors shares crashed on Thursday. The shares of the automobile company have fallen by more than 6 percent in BSE and have reached Rs 661.35. This fall in the shares of Tata Motors, the parent company of Jaguar Land Rover (JLR), has come after an announcement by US President Donald Trump.
Trump has announced a 25 percent tariff on imported cars and light trucks. These tariffs will be effective from April 2, 2025. Apart from Tata Motors, shares of other automobile and auto components companies have also seen a decline.
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Trumps Tariffs and Tata Motors: America is an Important Market for JLR
America is a very important market for Jaguar Land Rover (JLR). According to JLR’s annual report for the financial year 2024, the US market accounted for 22 % of the company’s total sales.
If we talk about the share performance of Tata Motors in the last six months, then the company’s shares have seen a decline of more than 30 percent. The shares of Tata Motors were at Rs 993 on 27 September 2024.
The shares of the automobile company have fallen to Rs 667.35 on 27 March 2025. Tata Motors shares have seen a decline of more than 43 percent from their 52-week high. The 52-week high level of Tata Motors shares is Rs 1179. At the same time, the 52-week low level of the company’s shares is Rs 606.30.
Other automobile stocks also crashed.
Shares of Samvardhan Madrasan also fell by more than 6 percent on Thursday. The company’s shares fell to Rs 124.75 on Thursday. Shares of Sona BLW, a company associated with the auto components industry, fell by more than 5 % to Rs 463.15 in BSE.The company’s shares have reached a new 52-week low. Shares of Eicher Motors have also seen a decline of about 2 %, while shares of Balkrishna Industries have fallen by more than 3 %.
Apart from this, the stock of American automobile company General Motors fell by 3% on Wednesday. At the same time, the stock of Stellantis, the parent company of Jeep and Chrysler, also fell by about 3.6%.
Trumps Tariffs and Tata Motors: Car prices may increase in America
According to reports, the average price of a new car in America is already around US$49,000 (Rs 42 lakh). If the new tariffs are implemented and the burden is put on the customers, then the price of imported cars may increase by $12,500 (Rs 10 lakh).
According to news agency PTI, this tariff may increase the cost of vehicle manufacturing and lead to a decline in sales. American car companies import many of their auto parts from other countries.
European Commission president said on Trumps Tariffs and Tata Motors.
European Commission President Ursula von der Leyen also lamented the US decision. She said tariffs are bad for businesses and even worse for consumers.
India is among the countries imposing the highest tariffs on American products. India has been among the countries imposing the highest tariffs. According to a report by the Indian Express, the average tariff in India was up to 125% till 1990-91. After liberalization, it kept decreasing. In 2024, India’s average tariff rate was 11.66%.
According to a report by The Hindu, the Indian government has abolished tariff rates of 150%, 125% and 100%. Now, the highest tariff rate in India is 70%. There was a 125% tariff on luxury cars in India, now it has been reduced to 70%. In such a situation, India’s average tariff rate in the year 2025 has come down to 10.65%.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗