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Trump's 25% tariffs on imports hurt Tata Motors, Eicher Motors, Other Auto Stocks by 7%
Mar 27, 2025 12:31 pm
By
infodivyadelhi


Divya Delhi:  As investors assess the effects of US President Donald Trump's 25% tax on foreign auto imports, auto and auto component stocks may be in focus today. Early trade saw Tata Motors, the parent firm of Jaguar Land Rover (JLR), fall 6.61 percent to Rs 663. Eicher Motor shares fell over 1% this morning. Sona Blw Precision Forgings Ltd and Samvardhana Motherson fell 4.52% and 4.35%, respectively. As tariff fears spread, Bharat Forge, Sansera Engineering, Suprajit Engineering, and Balkrishna Industries also lost money. At 9:30 am, the Nifty Auto index fell 1.5 percent. India's direct exports of fully completed vehicles to the US are small, but auto component firms with extensive global exposure may suffer. Tata Motors, Eicher Motors, Sona BLW, and Samvardhana Motherson, who export to Europe and important Asian markets that supply US vehicles, may be affected. Global automakers may pass on cost hikes to suppliers, squeezing component manufacturing margins. India exported $21.2 billion in auto components in FY24, whereas the world trade was $1.2 trillion. About 4.5 percent of worldwide auto component commerce went to the US and Europe.