Shares of India’s Tata Motors sank 10% on Monday, set for their worst day in over three years, as its luxury car unit Jaguar Land Rover paused exports of its British-made cars to the US after President Donald Trump’s 25% tariff came into effect.
The slide on the day has taken the stock’s tumble to 22% since Trump announced the import duties on March 26.
In that period the benchmark Nifty 50 has dropped 6.3%, including a 4% slump on the day.
The United States is the second-biggest importer of British-made cars after the European Union, with nearly a 20% share, data from industry body SMMT shows.
The US was one of JLR’s only growth markets last year and accounts for more than a quarter of its global sales of Range Rover Sports, Defenders and other models.
JLR’s sales, in turn, account for two-thirds of Tata Motors’ revenue and a significant part of its profit and cash flow.
That has made Tata Motors one of the biggest losers among auto stocks since the tariffs were announced, with its 22% slide more than double the roughly 10% drop in the broader auto index.
Besides Tata, the other carmakers in the 15-member auto index do not export to the US However, the index includes many component makers that have an indirect exposure, such as Bharat Forge, which supplies Tesla.
India’s Tata Motors plans to demerge business into two separate companies
Bharat Forge’s stock also tumbled about 10% on the day.
Brokerage CLSA said in a note last week that it expects a 14% drop in JLR’s overall volumes in the fiscal year to March 2026, led by a 26% drop in US sales on the back of tariffs.
Analysts still rate Tata’s stock “buy” on average, according to data compiled by LSEG, similar to its Indian peers.
Comments
Comments are closed for this article.