Tata Motors and U.S. Tariff Hikes: A Market Jolt

Shares of Tata Motors dropped by 3% following increased U.S. tariffs on imported vehicles and parts. This development impacts both American and Indian auto industries, with significant effects anticipated for companies like Jaguar Land Rover, Sona BLW, and others in the sector.

Shares of Tata Motors plummeted by 3% on Thursday after new tariffs on foreign-made automobiles, announced by the Trump administration, went into effect on March 26, impacting the auto sector significantly.

The tariffs, targeting imported passenger vehicles and key components, took effect from midnight on April 3. While Tata Motors shares fell by 2.64% to Rs 654.05 on the BSE, other companies saw declines as well. Sona BLW, Balkrishna Industries, and Bharat Forge also faced downturns.

The tariffs are viewed as a significant blow to the auto industry, especially for Tata Motors' British subsidiary, Jaguar Land Rover, which relies heavily on the U.S. market for sales. Meanwhile, Ashok Leyland and Eicher Motors managed slight gains despite the market pressure.

(With inputs from agencies.)