From Tata Motors to Eicher Motors— auto stocks to be in focus on Thursday. Here’s why

Auto stocks, including Tata Motors, Eicher Motors, and Samvardhana Motherson, will likely be in focus on Thursday after US President Donald Trump announced a 25 per cent tariff on all foreign-made automobiles. The tariffs will go into effect immediately at midnight Eastern Time.

Citing "horrendous imbalances" in trade as a key reason for the move, Trump said: “None of our companies are allowed to go into other countries. That’s why, effective at midnight, we will impose a 25 per cent tariff on all foreign-made automobiles."

Meanwhile, Trump announced a 26 per cent discounted reciprocal tariff on India.

Auto stocks to be the focus

Some of the auto stocks that could react to tariffs on automobiles include Tata Motors, which sells a significant number of JLR (Jaguar Land Rover) cars in the US.

Shares of India’s largest auto parts supplier, Samvardhana Motherson, may also face the heat of Trump tariff announcements.

US tariffs unlikely to have a significant impact on Indian auto sector. According to a Global Trade Research Initiative (GTRI) report, India’s automobile exports to the US in 2024 were relatively small, making the domestic sector largely insulated from Trump’s tariff hikes.

Passenger car exports from India to the US in 2024 amounted to just $8.9 million, commerce ministry data show. That was a fraction of India’s $6.98 billion worth of total car exports last year, indicating that Trump’s new tariffs would have little to no impact on India’s growing car export industry, as per the GTRI report.

However, India’s auto parts sector is the most exposed category to the recent US tariffs, with India exporting $2.2 billion worth of components to the US in 2024, amounting to 29.1 per cent of the country’s global auto parts exports, as per the commerce ministry data.

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