Tata Motors Shares in Focus as JLR Evaluates Response to New US Tariffs

Shares of Tata Motors are expected to remain in focus on Wednesday, April 9, after the company clarified that its UK-based subsidiary, Jaguar Land Rover (JLR), is actively evaluating options to address the impact of new US tariffs.

In a regulatory filing on Tuesday, April 8, Tata Motors said JLR is still working on formulating a response plan following the United States’ recent imposition of a 25% tariff on imported vehicles. The tariff, introduced by the Donald Trump-led administration, came into effect on April 3, 2025.

“JLR is evaluating various options to suitably address the impact of the increased tariff in the US market, and the aforesaid news article refers to its immediate response,” the Mumbai-headquartered auto major stated in its clarification to stock exchanges.

US Market a Key Revenue Driver for JLR

JLR, which is deeply entrenched in the American luxury auto market, has already initiated short-term measures in response to the new trade environment. The company announced a pause in vehicle shipments from its UK manufacturing facilities to the US as it works out revised trading terms.

“The USA is an important market for JLR’s luxury brands. As we work to address the new trading terms with our business partners, we are enacting our short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans,” a JLR spokesperson said in a statement last week.

The US market accounted for around 23% of JLR’s total sales of over 400,000 units in FY24. All vehicles sold in the US are exported from JLR’s UK-based plants, making the company particularly vulnerable to the tariff changes.

Tata Motors had acquired Jaguar Land Rover from Ford Motor Company in 2008 and has since expanded its presence in global luxury car markets through the iconic British brand.

Strategic Review Underway Amid Uncertain Trade Environment

The recent developments, especially the new US tariff policy, have injected fresh uncertainty into JLR’s operations and export strategy. Investors are expected to monitor the situation closely as Tata Motors and JLR formulate a comprehensive response plan for the coming weeks.

Stock Performance

On April 08, 2025, Tata Motors share price ended 1.56% higher at ₹588.90 Tata Motors’ share price reached a 52-week high of ₹1,179.05, and a 52-week low of ₹542.55. As per BSE, the total traded volume for the stock stood at 19.0 lakh shares with a turnover of ₹112.67 crores.

According to exchange data, Tata Motors shares are trading at a price-to-earnings (P/E) ratio of 34.97x, based on its trailing 12-month earnings per share (EPS) of ₹16.84, and a price-to-book (P/B) ratio of 7.08.

Conclusion

In conclusion, the newly imposed US tariff poses a significant challenge for JLR, given the American market’s major contribution to its sales.

Tata Motors and JLR are taking immediate steps, including a shipment pause while exploring long-term strategies to navigate the shifting trade landscape. The outcome of their response will be crucial for sustaining growth and investor confidence.

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