Stock Market Crash: Trump's decision caused loss of ₹1 lakh crore

After US President Donald Trump announced a 25% tariff on automobile imports, the stock market of major Asian auto companies witnessed a huge decline. In just one day, the market cap of these companies evaporated by more than $12 billion (about ₹1 lakh crore).

Toyota suffers the biggest loss- Toyota Motor Corp. suffered the biggest loss as its market cap fell by $6.8 billion. It is the world's second-largest carmaker after Tesla.

Tata Motors also suffered a big blow- India's Tata Motors' market cap fell by $1.7 billion (about Rs 14,200 crore) to $28.7 billion. Tata's luxury unit Jaguar Land Rover (JLR) has 31% sales in the US, and these vehicles come from the UK - due to which the company will have to face heavy duty. BYD became an exception- Shares of Chinese EV maker BYD Co. rose 3%, and the company's market cap increased by $4 billion to $160.2 billion. This was due to domestic demand and less dependence on the US (exports were only 30% in FY24). Impact on other Indian companies- Sona BLW: 43% revenue from US, share fell by 7%. Bharat Forge: 38% revenue from US, share down by 2%. Samvardhana Motherson: Some relief due to having manufacturing units in US, although the stock fell by 8% during the day and then closed at a decline of 3.3%. Who all will be affected by tariffs? Japan: 1/3rd of auto exports to the US. South Korea: 67% of Hyundai and 45% of Kia's vehicles are sent to the US. India: Challenge for big exporters like Tata, Bharat Forge, Sona What do experts say? According to CLSA, the US market has been low-margin for JLR anyway, but the new taxes may increase the pressure further. Also, companies which have units in the US can balance this impact to some extent. Overall – the new US tariff rule has shaken the global auto market, especially those companies which manufacture outside the US. 

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