Tata Motors And Other Automotive Stocks Drag Nifty Auto After Trump’s Tariff Statement

Tata Motors Share Price: Tata Motors shares extended losses for the fourth straight session on March 27. The stock declined over 6 per cent to hit an intraday low of Rs 661.1 apiece on the NSE. The stock declined following U.S. President Donald Trump’s announcement regarding the imposition of a 25 per cent tariff on imported vehicles.

Following the announcement the Nifty Auto index also dropped over 2 per cent to an intraday low at 21,216.4 level. Nifty Auto heavyweights such as Tata Motors, Mahindra & Mahindra Ltd and Bajaj Auto which have an index weightage of 13.62 per cent, 23.97 per cent and 9.18 per cent respectively dragged the index lower. Notably shares of Tata Motors declined the most among all constituents of the index. Other constituents which declined significantly included Samvardhana Motherson Ltd, Balkrishna Industries Ltd and MRF Ltd as they fell as much as 2.76 per cent in early trade.

Why Are Tata Motors Shares Declining

Tata Motors is the parent company of Jaguar Land Rover (JLR). US is a key geography for Tata Motors’ JLR business. As per Jaguar Land Rover’s annual report for FY 2024 the US makes up nearly 22 per cent of the company’s total sales. The imposition of a 25 per cent trade tariff can potentially increase the prices of JLR’s vehicle lineup. This price hike can negatively impact demand for the company.

While the US President has hinted at the imposition of tariffs since early February 2025, the signing of a proclamation to implement the tariffs has intensified fears around the same.

“What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the United States,” Trump said.

According to a Bloomberg report the proposed tariffs will apply to both fully assembled vehicles, and automotive components like engines, transmissions, powertrain parts etc. The report also mentioned that more automotive components could become subject to tariffs in the coming days.

US India Bilateral Meet

As per a Reuters report which cited a a US embassy spokesperson a delegation of US officials is in India from March 25-29. The delegation will conduct trade talks with Indian officials. The report added that Brendan Lynch the Assistant U.S. Trade Representative for South and Central Asia is leading the group.

While markets across the globe are waiting for clarity regardin the imposition of trade tariffs from April 2, the U.S. administration has suggested that not all tariffs will be enforced.

Automakers Impacted Globally

The decline seen in the Nifty Auto has followed a global decline in the stock prices of major automotive companies. In the US market shares of General Motors closed lower by 3.12 per cent on the NYSE. Shares of major Japanese automakers such as Toyota, Nissan, Honda, Mitsubishi Motors, Mazda and Subaru closed lower by as much as 5.3 per cent.

Tata Motors Share Price History

Tata Motors share price has declined over 32 per cent in a year on the NSE. On a Year-to-Date (YTD) basis the stock fell nearly 10 per cent. In six months the stock has fallen over 33 per cent and in a month the stock has gained 0.1 per cent. In five days the stock has declined over 3 per cent.

At the time of writing shares of Tata Motors recovered from the day’s low to trade at Rs 674.5 apiece on the NSE, down by 4.77 per cent.

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