Tata Motors plunged 8.41% to Rs 562.20 after the media reported that Jaguar Land Rover (JLR), its UK-based subsidiary, will temporarily suspend vehicle exports to the U.S. starting April 7.
The move comes in response to the Trump administration's recent 25% import tariff on foreign automobiles. JLR plans to use this pause to work with business partners, reassess trading strategies, and chart a course for the mid- to long-term.The U.S. is a critical market for JLR, contributing 23% of its revenue and 26% of wholesale volumes in FY24a pause this size is bound to leave a dent.
In reaction to the tariff shock, a global brokerage downgraded Tata Motors from high-conviction outperform to outperform and slashed its target price to Rs 765 from Rs 930 per share, citing potential earnings pressure in the near term.
Tata Motors, part of the Tata Group, is a global automobile manufacturer of cars, utility vehicles, pickups, trucks, and buses. The company's consolidated net profit declined 22.4% to Rs 5,451 crore on 2.8% rise in net sales to Rs 1,12,833 crore in Q3 FY25 over Q3 FY24.
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