TAMO Tanks: Donald Trump’s Auto Tariffs Spook Tata Motors Shares; Down 7% - What’s The Connection?

Tata Motors' shares plummeted by nearly 7% in early trading today, opening at Rs 668 on the NSE, down from the previous day's close of Rs 708.25.

The stock's sharp decline follows President Donald Trump's announcement of a 25% tariff on imported cars, a move aimed at bolstering domestic manufacturing.

Impact on Jaguar Land Rover
Tata Motors, which owns Jaguar Land Rover (JLR), is significantly affected as JLR heavily relies on the US market. According to JLR's FY2024 report, nearly one-third of its sales came from North America, contributing 22% to its total revenue. The luxury automotive brand, headquartered in the UK, operates manufacturing plants globally, excluding the US.

Tata Motors Share Price History 
Over the past decade, Tata Motors' stock has recorded a modest gain of 27.24%. In the last five years, it witnessed an impressive surge of 854.28%, reflecting strong long-term growth. Over the last three years, the stock gained 56.05%, while in the past two years, it saw an increase of 63.70%. However, in the last year, the stock experienced a sharp decline of 31.12%, a trend that continued over the last six months with an identical drop of 31.12%. 

The past three months also saw a decline of 10.17%, indicating short-term weakness. Despite this, the stock showed some recovery in the last month, gaining 4.01%. However, in the past week, it declined again by 2.31%, highlighting its ongoing volatility in the short term.

The announcement underscores the volatility in global markets amid escalating trade tensions. Analysts suggest monitoring Tata Motors' stock closely as developments unfold regarding US tariffs and their impact on international automotive sectors.