Auto stocks slump on Trump tariff; Tata Motors tanks over 6%

Tata Motors logos are pictured outside their flagship showroom in Mumbai.
| Photo Credit: REUTERS

Auto stocks declined in morning trade on Thursday (March 27, 2025), with Tata Motors tumbling over 6%, after the U.S. President Donald Trump announced imposition of 25% tariffs on auto imports from April.

Shares of Tata Motors tanked 6.58% to ₹661.35 on the BSE.

Ashok Leyland dropped 4.60%, Mahindra & Mahindra dipped 1.70%, Bajaj Auto slipped 1.48% Apollo Tyres skidded 1.41%.

The BSE auto index quoted 0.86% lower at 48,286.47.

Among auto components and equipment firms Samvardhana Motherson International slumped 7.59%, Sona BLW Precision Forgings tanked 6.69%, Bharat Forge declined 4.28% and ASK Automotive Ltd went lower by 1.82%.

“Mr. Trump’s latest decision to impose a 25% duty on all car imports to the U.S. will impact Tata Motors which exports a significant chunk of JLR cars to the U.S.,” V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Mr. Trump on Wednesday (March 26, 2025) announced imposition of 25% tariffs on auto imports from April with another 25% tariffs expected to be applied on imports of major automotive parts— engines and engine parts, transmissions and powertrain parts, and electrical components by May.

In the equity market, the 30-share BSE benchmark Sensex traded 427.54 points higher at 77,716.04 despite a weak opening. The NSE Nifty quoted 135.30 points up at 23,622.15, recovering all the opening losses.