Tata Motors, Motherson Sumi, others slip upto 7.5% on Trump 25% auto tariff

The fall in auto stocks came after the US President Donald Trump, on Wednesday, announced that he would impose a 25% tariff on all cars imported into the US that are not manufactured domestically

Auto stocks bleed: Auto and auto component stocks were under pressure on Thursday, March 27, 2025, with several scrips declining up to 7.5 per cent during intraday trading on the NSE. 

 

Meanwhile, the Nifty Auto index dropped 2.42 per cent, hitting an intraday low of 21,216.40. 

 

The fall in auto stocks came after the US President Donald Trump, on Wednesday, announced that he would impose a 25 per cent tariff on all cars imported into the United States that are not manufactured domestically. 

 

The new tariffs, which will come into effect on April 2, with collections starting on April 3, raised concerns about the impact on global auto manufacturers.  ALSO READ | SENSEX TODAY | STOCK MARKET LIVE UPDATES

 

 

Individually, Tata Motors shares were among the hardest-hit stocks, seeing a decline of 6.58 per cent, falling to an intraday low of ₹661.35. 

 

According to VK Vijayakumar, chief investment strategist at Geojit LInvestments, “Trump’s latest decision to impose a 25 per cent duty on all car imports to the US will impact Tata Motors which exports a significant chunk of JLR cars to the US."

 

Similarly, analysts at ICICI Securities noted that North America (largely US) is a very important market for Tata Motors overseas luxury PV arm i.e. JLR. Its share in volumes is pegged at 33 per cent (wholesales at 94,000 units amidst total wholesales of 290,000) and is the key growth region for the company amidst overall muted demand in other regions. This is sentimentally negative for JLR and Tata Motors, however we expect the tariffs to be much lower than proposed and will largely be taken care of by the trade deal negotiations between the US and EU block. 

  Ravi Singh, SVP of retail research at Religare Broking also highlighted the recent 25 per cent tariff on imported automobiles by the US has significantly impacted Indian auto stocks, causing notable declines. On March 27, 2025, Indian auto shares dropped up to 7 per cent, with Tata Motors leading the fall at over 6 per cent, primarily due to its reliance on Jaguar Land Rover exports to the US. This could reduce demand in the US market, as increased duties on imported components may raise manufacturing costs and vehicle prices. 

 

“This uncertainty has led to a cautious market sentiment. Overall, the tariff announcement has created a bearish outlook for Indian auto stocks, particularly affecting companies heavily dependent on US sales,” Singh added.

 

The news sent shockwaves through the broader auto sector, affecting various key players in the market.  ALSO READ | Time to cherry pick travel-related stocks ahead of holiday season: Analysts

 

Other auto stocks also witnessed major losses, including Motherson Sumi Wiring, which plunged 7.29 per cent to ₹125.09, and Ashok Leyland, which fell 4.56 per cent to ₹205.17. 

 

Balkrishna Industries dropped 3.97 per cent to ₹2,478.50, while Bharat Forge lost 4.48 per cent, falling to ₹1,129.85. Eicher Motors declined 1.91 per cent to ₹5,300, and Bosch saw a 1.67 per cent dip to ₹27,601.20. Other notable losers included Bajaj Auto, Apollo Tyres, Exide Industries, and M&M, all of which recorded declines in the range of 1.5 per cent to 2.5 per cent. Meanwhile, Maruti Suzuki and Hero MotoCorp showed more moderate losses of around 0.6 per cent and 0.9 per cent, respectively.

 

However, at 9:44 AM, Nifty Auto index was off day’s low and was trading 1.39 per cent lower at 21,440.50 levels.