Tata Motors’ share price plunged 13% to an intra-day low of Rs 535.75 after the company’s subsidiary, Jaguar and Land Rover, decided to halt shipment for a month to the US. It said that it is assessing the impact of US President Donald Trump’s tariffs on vehicle imports.
According to the company, it plans to use this pause to work with business partners, reassess trading strategies, and chart a course for the mid-to-long term.
Trump implemented a 25% tariff on all foreign-made automobile imports into the country, a move that came into effect on April 02. The White House also said it intends to place tariffs on some auto parts no later than May 3.
“For JLR, the US is a key market and accounts for 28- 30% of its volumes. If there is a significant increase in vehicle prices on account of the tariff, that could hurt JLR’s volumes and profitability,” said Arun Agarwal, Vice President of Fundamental Research at Kotak Securities. “JLR’s premium brand positioning could help cushion some impact from this though. The situation remains uncertain for now, but the risk of global recession has increased earning risks for this financial year,” he added.
By the way, Tata Motors is gearing up for demerger. It has scheduled the shareholders meeting on May 6 for the same. Tata Motors is officially splitting its business into two – one focused on commercial vehicles and the other on passenger vehicles, including Jaguar Land Rover (JLR) and electric cars.
Tata Motors Q3 result
Tata Group’s automaker reported a 22% drop in Q3 of the current financial year, hurt by weak performance at its Jaguar Land Rover (JLR) and domestic car businesses. The company’s profit fell to Rs 5,451 crore ($630 million) in Q3 FY25, compared to Rs 7,025 crore a year ago. The revenue from operations rose 3% YoY to Rs 1.13 lakh crore.
Tata Motors share performance
The share price of Tata Motors has fallen 17% in the past five trading days. The index has fallen 13% in the last one month and erased more than 39% of investors’ wealth in the previous six months. The stock has corrected 45% in the last one year.