Tata Motors Share Price Gains, Stock Bounces Back 14 Per Cent From 52-Week Low - Know Why

Tata Motors Share Price: Shares of Tata Motors gained over 5 per cent in early trade to trade at an intraday high of Rs 612.8 apiece on the NSE. The stock gained following US President Donald Trump’s announcement to pause the imposition of tariffs temporarily.

Why Is Tata Motors Share Price Increasing

At the intraday high level, the stock has bounced back over 14 per cent from its 52-week low level of Rs 535.75 apiece. The stock recorded its 52-week low on April 7, following Trump’s decision to impose reciprocal tariffs on all its trading partners.

Additionally, the stock had also come under pressure from Trump’s automotive tariffs imposed earlier in April. The stock gained after Trump announced a 90-day pause on trade tariffs on all countries other than China. With the 90-day pause, the automotive company’s shares are likely to get a breather.

Tata Motors is the parent company of Jaguar Land Rover and the US is a key market for the company. As per JLR's annual report for the financial year 2024, as much as 22 per cent of its total sales came from the US market.

“We're going to impose a 25 per cent tariff on all cars not made in the United States,' Trump said in an event in the Oval Office.

Despite the gains made today, there’s uncertainty regarding how Tata Motors will deal with the separate set of 25 per cent tariffs on automobile imports. Notably no announcement has been made regarding these tariffs.

At the moment Tata Motors' Jaguar Land Rover unit has paused shipments to the US for the month of April.

Trump added that the tariff pause had been announced as more than 75 countries had negotiated instead of retaliating against the tariff imposition. He also said that during the 90-day period a tariff of just 10 per cent would be in effect.

Notably, the tariffs on China have been increased to 125 per cent, up from the previously declared 104 per cent. It remains to be seen how the market will factor in the impact of the tariff pause in the coming days.

Tata Motors Share Price History

Shares of Tata Motors have fallen over 40 per cent on the NSE in a year. On a year-to-date basis, the Tata Group company’s stock has slipped nearly 19 per cent. In six months the stock has fallen over 35 per cent and in a month the company’s stock has declined over 8 per cent. In five days the stock has tumbled over 7 per cent. At the time of writing shares of Tata Motors traded at Rs 602.35 apiece up by 3.34 per cent on the NSE.