Tata Motors Tanks by a Whopping 10% at Opening

Posted by : sachet | Mon Apr 07 2025

Tata Motors share prices tanked by a huge 10% at its opening to hit lower circuit at ₹552.50 today on 7th April 2025. Jaguar Land Rover pauses shipments to US amid heavy auto tariffs by US President Donald Trump. JLR is the UK-based subsidiary of Tata Motors, and it announced this pause of shipment.

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Tata Motors Share Price

As of now, on 7th April 2025 (11:30:43 AM), Tata Motors share is trading at 7.86% down or ₹48 to reach at ₹565.80. Investors are keenly looking for the expert’s viewpoints and analysis to make an informed investment decision on this share.

Key Highlights on Tata Motors & JLR

Leading auto manufacturer Tata Motors has officially announced its move to pause shipment of JLR’s products to the US in response to the 25% tariff on imported vehicles by US President Donald Trump. It is estimated that a 25% tariff would result in a 14% YoY drop in JLR volume by the end of FY26.

JLR in the US Market

Jaguar and Land Rover have a deep exposure to the US market. It sold 4+ lakh units globally, out of which 23% were sold in the United States alone. CLSA is expecting JLR’s EBIT margin to fall to 7% in FY26- 27. However, free cash flow is expected to remain positive in the current year.

The United States alone contributed more than a fifth of JLR’s total revenue in the previous year. Nirav Karkera (Head of Research at Fisdom) said JLR will likely resort to price hikes and cost efficiencies. However, these strategies won’t yield immediate results, and a near-term hit to both revenue and profitability is expected.

What’s Ahead

Tata Motors share is under pressure from the past 1 year eroded 44.19% in value. Against this sharp decline, Nifty50 fell around 2.85%. Analysts told to remain neutral on Tata Motors share and suggested to wait till its bounce back trend.

Analysts are also expecting a downward trend in the near-term period in Tata Motors’ share price.