Tata Motors Shares Fall 5.4%: Why Auto Stocks Slide Up To 7%

Leading auto stocks witnessed steep decline in trade on March 27, 2025 soon after US President Donald Trump declared that car imports to US will now incur 25% duty. Tata Motors shares witnessed decline of 5.48% on Bombay Stock Exchange (BSE) to Rs 670.70 per share. Meanwhile, shares of Samvardhana Motherson International Ltd slid 3.33% at the time of writing the story to Rs 130.50 per share and Sona BLW Precision Forgings Ltd shares slipped 6.73% on BSE to Rs 463.00 per share. However, Eicher Motors Ltd witnessed marginal decline only as shares are trading 0.84% lower to Rs 5355.00 per share on BSE.

Meanwhile, auto component makers with strong export presence in US may feel the heat. The firms that may get impacted by the latest US administration move are Tata Motors, Eicher Motors, Sona BLW Precision, and Samvardhana Motherson International, among others. These firms supply automobiles to US apart from Europe, Japan, China, etc.

Tata Motor’s owned Jaguar Land Rover (JLR) may feel pressure as US has emerged a crucial market for the carmaker. According to its recent annual report, about one-third of JLR’s entire sales in 2024 generated from North America only with 22% from US.

Traders are worried about the repercussion of the latest tariff move and how it is going to affect company’s profit margins and revenue. The 25% tariff plan declared ahead of April 2, 2025 when Donald Trim will levy reciprocal tariffs on few nations. The move led to sharp dip in the stocks of leading automakers as shares of Samvardhana Motherson, Tata Motors, Sona BLW, and Eicher Motors plunged up to 7%.

Earlier, management of Tata Motors said that JLR expected to meet its Q4 guidance of 10% EBIT margins and become debt-free by year-end. The statements led to jump in Tata Motors shares as the stock gained 2.10% in last 2-weeks and soared 3.23% in last 1-month.

Meanwhile, Samvardhana Motherson shares tanked over 3% today. Earlier, Samvardhana Motherson shares gained 7.35% in last 2-weeks. The company has vast presence in US and Europe market. But the company may not face much heat by the latest move as it has established local manufacturing facilities in these markets.

On the other hand, Sona BLW is engaged in the manufacturing of automotive systems and components that may include starter motors and differential gears. It generates a significant chunk of its revenue (over 65%) from US and Europe.

Eicher Motors may also face some heat by the latest Trump’s decision of imposing 25% duty. Earlier, the stock zoomed 6.75% in last 2-weeks. The reason why it is likely to face pressure is that because US has emerged a key export market for Royal Enfield’s motorcycles.

Disclaimer: The story highlights decline in auto stocks and should not be considered as investment advice by the Moneydaily.in or the Author. Moneydaily.in and the author will not be held responsible for any losses caused as a result of decisions based on the above information. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.