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Jaguar Land Rover (JLR), the luxury vehicle subsidiary of Tata Motors Ltd, has temporarily halted shipments to the US this April in response to new US tariffs on foreign automobiles. The decision comes after US President Donald Trump imposed a 25 per cent tariff on all imported fully assembled vehicles on April 2. The order also applies to auto components and tariffs on those items will take effect from May 3.
Although India's car manufacturers will face less direct impact due to limited exports to the US, Tata Motors could still face losses through its British subsidiary JLR. According to its latest annual report, JLR, a major profit-making company for Tata Motors, sold 430,000 vehicles worldwide in the 12 months ending March 2024, of which nearly a quarter - about 107,500 units - were destined for North America.
What the company said A JLR spokesperson said in an emailed statement "The US is an important market for JLR's luxury brands. We are taking short-term actions, including stopping shipments in April, while developing our mid-to-longer-term plan." He said that we are working with our business partners to address the new trading conditions. We are implementing our short-term actions, including stopping shipments in April. According to the Global Trade Research Initiative, India's car exports to the US in 2024 were just $ 8.9 million, a mere 0.13 per cent of the country's total automobile exports, which reached $ 6.98 billion. However, in FY 2024, JLR derived 23 per cent of its revenue and 26 per cent of wholesale volume from the US. This share has increased to 33 per cent in the nine months ended December 31, 2024. Share performance On Friday, Tata Motors shares closed at 5.94 The stock closed at Rs 615.10 with a decline of 38.92 percent in the last one year. On Thursday, brokerage firm CLSA reduced the rating of Tata Motors from High Conviction Outperform to Outperform and reduced its price target by 18 percent from Rs 930 to Rs 765.
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