Tata Motors Passenger Vehicles slips 4%, nears 52-week low; here's why

As per media reports, the US government has a announced 10% tariff on the European Union and the UK, effective from February 1, 2026.

Tata Motors Passenger Vehicles (PV) share price today

 

Shares of Tata Motors Passenger Vehicles (PV) slipped 4 per cent to ₹338.50 on the BSE in Monday’s intra-day trade amid reports that the US government has announced a 10 per cent tariff on the European Union and the UK, effective from February 1, 2026. The stock price of Tata Group automobile company was quoting close to its 52-week low of ₹335.30 touched on April 7, 2025.

 

At 10:20 AM; Tata Motors PV traded 3 per cent lower at ₹342.85, as compared to 0.66 per cent decline in the BSE Sensex. 

 

 

Trump to levy 10% tariffs on European allies amid push to acquire Greenland

 

In a post on Truth Social, the US President Donald Trump on Saturday said a 10 per cent import tax would take effect from February 1, on goods originating from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland.

 

He added that the tariff would rise to 25 per cent from June 1, if no agreement is reached on what he described as the “complete and total purchase” of Greenland by the United States.

 

The remarks mark a sharp escalation in rhetoric over Greenland and signal the possibility of a broader trade confrontation between the United States and several key European partners if no agreement is reached, the Business Standard reported.

 

Brokerages view on Tata Motors PV

 

The US government’s 10 per cent tariff announcement on the European Union and the UK is sentimentally negative for the Tata Motors PV’s overseas luxury car entity i.e. Jaguar Land Rover (JLR) which counts North America as one of its core export markets (share in sales volume pegged at 28 per cent in YTDFY26). 

 

UK manufactured exports to the US attract 10 per cent import duty while Slovakia plant (part of EU) which exports Defender to the US is subject to 15 per cent tariff. JLR is already under stress owing to the recent cyberattack as well as weak demand sentiments. If the increase in tariff materializes, it shall further impact the sales volume & financials of the company going forward. The situation is fluid at the moment and we shall closely monitor this development, ICICI Securities said in a note.

 

Meanwhile, JLR’s wholesale (excl. CJLR) for October to December 2025 quarter (Q3FY26) declined by 43 per cent year-on-year, impacted by the cyber incident as phased ramp-up saw production levels normalise in mid-November 2025. This coupled with an incremental US tariff impacted JLR's timely distribution of vehicles in key markets.

 

Management had already guided for a weaker Q3. JLR faces demand challenges and margin pressure across key markets, mirroring the challenges faced by its larger peers, like BMW, Porsche, and Volkswagen. 

 

Analysts at BNP Paribas India in a January 6, 2026 company update said that the brokerage firm sees JLR’s profitability in the US impacted by the recent tariffs, which have resulted in elevated incentives despite the production shutdown. In China, intense competition from local luxury electric vehicle (EV) players, coupled with luxury tax, will impact Tata Motors’ volume and margins. 

 

In the UK and Europe, consumer sentiments remain mixed and do not indicate any material recovery in demand. Limited FCF recovery visibility and global demand headwinds make Tata Motors PV’s equity story fraught with risk and volatility. 

 

The brokerage firm further said that its valuation metrics offer a potential range of ₹299 - ₹413, in which it believes the stock could trade. Analysts value the business as an average of four valuation methodologies, implying a target price of ₹360.  ==========================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.