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Shares of Tata Motors, Samvardhana Motherson, and Sona BLW Precision Forgings surged up to 8%; What investors should know
Tata Motors. (File photo)
Shares of Tata Motors, Samvardhana Motherson, and Sona BLW Precision Forgings surged up to 8% on Tuesday, buoyed by US President Donald Trump’s recent announcement of tariff exemptions on certain imported goods.
Tata Motors emerged as the top gainer on the Nifty 50 index in early trade, rising over 4%, while shares of Samvardhana Motherson and Sona BLW jumped more than 7% each, buoyed by positive global cues following tariff-related comments from US President Donald Trump.
Trump said on Monday that he is considering measures to assist automobile companies that are in the process of shifting production to the United States. “I’m looking for something to help some of the car companies, where they’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time because they’re going to make them here,” he stated, though he did not offer further details on any specific plans.
The remarks sparked a rally in automotive stocks globally, with shares of U.S. carmakers like General Motors, Ford, and Stellantis (Chrysler’s parent company) climbing as much as 6%. Asian auto giants such as Toyota, Honda, and Kia also saw their stocks surge in Tuesday’s session.
Currently, Mexico and Canada account for about 30% to 60% of vehicles sold in the US. For automakers like General Motors and Toyota, roughly 30% to 40% of their US sales come from vehicles produced in Mexico and Canada. In the case of Volkswagen, that figure climbs to 60%.
Among Indian auto component makers, Mexico contributes about 4% of Samvardhana Motherson’s revenue and around 2% for Sona BLW. These exposures are under increased scrutiny as the US continues to maintain the 25% import tariffs on autos announced by the Trump administration.
In response to these tariffs, Tata Motors’ subsidiary, Jaguar Land Rover, has suspended shipments to the US for the month of April.
Shares of Tata Motors were up 4.3% in early trade at Rs 620.4, gaining nearly Rs 100 from its recent 52-week low of Rs 535. Samvardhana Motherson shares rose 7.2% to Rs 126.73, though still trading well below their 52-week high of Rs 217. Sona BLW also gained 7.1% to Rs 457.5, despite a notable correction from its peak levels.
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