Tata Motors and different auto shares together with Samvardhana Motherson and Sona BLW Precision gained focus in Wednesday’s session as after the reciprocal announcement on the ‘Liberation Day’ later immediately, auto import tariffs to the tune of 25 per cent will come into impact from tomorrow (April 3, 2025).
As we write, Tata Motors shares traded with tad good points at Rs 672.45 per share, whereas Samvardhana Motherson and Sona BLW Precision traded blended, with the previous down marginally and alternatively Sona BLW was up by a margin at Rs 461.9 per share.
In the day prior to this’s commerce additionally Tata Motors shares fell and ended 0.39 per cent decrease at Rs 671.85 per share on the NSE, whereas Samvardhana Motherson and Sona BLW ended blended with the previous ending a tad larger and the latter ending decrease.
Different auto shares additionally gained with Bharat Forge gaining once more by a tad 0.5 per cent and settling at Rs 1,154 per share on the NSE.
All about US auto import tariffs
US President Donald Trump has introduced to levy a 25 per cent tariff -in addition to different duties – on imports of completed auto merchandise beginning April 3. The bottom US tariff for automotive imports is pegged at 2.5 per cent.
What would be the affect of US auto tariffs on Indian autos?
Atul Parakh, CEO of Bigul held that the 25 per cent obligation imposed by the Trump administration on international automobile imports and auto components is greater than only a commerce restriction—it is a potential game-changer for Indian auto makers. Tata Motors is especially weak, with its Jaguar Land Rover subsidiary more likely to face extreme headwinds. Whereas direct US exports are comparatively small, the ripple results could possibly be substantial.
Auto part gamers like Bharat Forge and Motherson Sumi, who’ve constructed intricate provide chains with US producers, are more likely to really feel probably the most rapid pinch. We’re taking a look at potential margin compressions of 3-5% and a urgent must quickly diversify export markets. Indian auto firms’ methods to penetrate rising markets in Southeast Asia and Africa for danger mitigation, probably turning a problem right into a long-term development alternative, added Bigul.
