India's Tata Motors slides 10% after luxury arm JLR pauses exports to US

Reuters

Sun, Apr 6, 2025, 9:09 PM 2 min read

(Reuters) -Shares of India's Tata Motors sank 10% connected Monday, acceptable for their worst time successful implicit 3 years, arsenic its luxury car portion Jaguar Land Rover paused exports of its British-made cars to the U.S. aft President Donald Trump's 25% tariff came into effect.

The descent connected the time has taken the stock's tumble to 22% since Trump announced the import duties connected March 26. In that play the benchmark Nifty 50 has dropped 6.3%, including a 4% slump connected the day.

The United States is the second-biggest importer of British-made cars aft the European Union, with astir a 20% share, information from manufacture assemblage SMMT shows.

The U.S. was 1 of JLR's lone maturation markets past twelvemonth and accounts for much than a 4th of its planetary income of Range Rover Sports, Defenders and different models.

JLR's sales, successful turn, relationship for two-thirds of Tata Motors' gross and a important portion of its nett and currency flow.

That has made Tata Motors 1 of the biggest losers among car stocks since the tariffs were announced, with its 22% descent much than treble the astir 10% driblet successful the broader car index.

Besides Tata, the different carmakers successful the 15-member car scale bash not export to the U.S. However, the scale includes galore constituent makers that person an indirect exposure, specified arsenic Bharat Forge, which supplies Tesla.

Bharat Forge's banal besides tumbled astir 10% connected the day.

Brokerage CLSA said successful a enactment past week that it expects a 14% driblet successful JLR's wide volumes successful the fiscal twelvemonth to March 2026, led by a 26% driblet successful U.S. income connected the backmost of tariffs.

Analysts inactive complaint Tata's banal "buy" connected average, according to information compiled by LSEG, akin to its Indian peers.

(Reporting by Nandan Mandayam successful Bengaluru; Editing by Savio D'Souza)