Tata Motors share price falls 10% as car exports to U.S. halt
Tata Motors share price takes hit after Jaguar Land Rover halts U.S. shipments
Shares of Tata Motors Ltd fell by 10% on Monday, marking the stock’s steepest single-day decline in over three years.
The sell-off came after its luxury vehicle subsidiary, Jaguar Land Rover (JLR), announced a suspension of exports of British-made cars to the United States. The decision followed the implementation of a sweeping 25% import tariff by President Donald Trump, part of his broader tariff regime introduced late last month, reports Reuters.
The latest drop brings Tata Motors’ total stock decline to 22% since March 26, when Trump announced the tariffs. In comparison, India’s benchmark Nifty 50 index has lost 6.3% over the same period, including a 4% decline on Monday alone. The auto sector, particularly Tata Motors, has borne the brunt of the escalating U.S. trade actions.
U.S. Market Key to JLR Growth
The United States is the second-largest importer of British-made vehicles after the European Union, accounting for nearly 20% of such exports, according to the Society of Motor Manufacturers and Traders (SMMT). It is also a vital growth market for Jaguar Land Rover, contributing over a quarter of the company’s global sales of popular models like the Range Rover Sport and Defender.
JLR’s performance is critical to Tata Motors’ overall financial health, as it generates approximately two-thirds of the parent company’s revenue and is a major driver of profit and cash flow. The halt in U.S. exports has therefore raised serious concerns among investors about near-term revenue and earnings.
Tariff Fallout Spreads Beyond Tata
While Tata Motors has been the hardest hit among Indian auto stocks, the broader auto index—comprising 15 companies—also felt the impact. Many of the other automakers do not export to the U.S. directly, but component suppliers such as Bharat Forge, which counts Tesla among its clients, have indirect exposure. Bharat Forge shares also sank roughly 10% on Monday.
CLSA, a global brokerage, forecast a 14% decline in JLR volumes for the fiscal year ending March 2026, driven by a projected 26% fall in U.S. sales due to tariffs. Still, most analysts continue to rate Tata Motors as a “buy,” consistent with ratings for its industry peers.
Additionally, U.S. customs officials began enforcing a significant new trade policy on April 5, 2024, implementing a 10% baseline tariff on most imports, marking the start of a broad-scale trade shift initiated by President Donald Trump.
