Tata Motors Shares to Remain in Focus as US Imposes 25% Tariffs on Non-US Manufactured Cars

Shares of Tata Motors, the parent company of Jaguar Land Rover (JLR), are expected to be in focus on Thursday, March 27, after US President Donald Trump announced a 25% tariff on imported cars not manufactured in the US.

The tariffs will take effect on April 2, coinciding with Trump’s announcement of reciprocal tariffs on other countries, details of which are still awaited.

Significance of the US Market for JLR

The US is a crucial market for Jaguar Land Rover, with North America accounting for nearly one-third of JLR’s total sales in 2024.

According to JLR’s annual report for FY24, 22% of its global sales originated from the US market, making it a significant contributor to the company’s revenue.

Financial Outlook and Stock Performance

Tata Motors’ management has recently reaffirmed that JLR is on track to achieve its fourth-quarter guidance of 10% EBIT margins and aims to be net debt-free by the end of the current financial year. These comments had previously helped the stock recover from its 52-week low of ₹606.

Despite this recovery, Tata Motors share price remained 40% below their peak of ₹1,179, reached on July 30 last year. The stock has gained 16% from its 52-week low but ended Wednesday’s trading session 0.4% lower at ₹707.

Conclusion 

Tata Motors shares face uncertainty as US tariffs threaten JLR’s key market, contributing 22% of global sales.

While JLR maintains its Q4 margin target and debt-free goal, the 25% tariff could pressure profitability. Despite recovering 16% from lows, the stock remains 40% below its peak. Investors will monitor tariff details and JLR’s strategic response to gauge long-term impact.

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