Shares of Indian automakers experienced a downturn on Thursday following former U.S. President Donald Trump’s announcement of plans to impose 25% tariffs on all imported cars and auto parts.
Tata Motors (TAMO.NS), a prominent player in the Indian market, saw its shares slip, as did several auto parts manufacturers that supply companies such as Tesla (TSLA.O).
The U.S. tariffs are slated to begin on April 2nd for cars and light trucks, while the levies on auto parts will take effect from May 3rd. Globally, the automotive sector reacted strongly, with Tesla CEO Elon Musk noting a “significant” impact on the electric vehicle manufacturer.
One of the companies that took a hit was Sona Comstar (SONB.NS), Tesla’s biggest Indian supplier, saw its shares fall by over 4%. This contributed to a 1.2% dip within the broader auto sector (.NIFTYAUTO) in India, which is the world’s third-largest auto market.
Tata Motors-owned Jaguar Land Rover’s (JLR) luxury vehicles, which the company imports from the United Kingdom and Slovakia, have the U.S. as a top destination for sales. Other companies affected included Samvardhana Motherson (SAMD.NS), and Bharat Forge (BFRG.NS), which also supplies Tesla. Samvardhana relies on the U.S. for 20% of its total revenue, and North America accounts for 40% of Sona Comstar’s revenue.
The negative trend mirrored the performance of larger global carmakers, including Toyota, Hyundai, Stellantis, and Ford, all of which saw their stocks fall following the announcement.
